Place of supply for UK → IE digital services post-Brexit — reverse charge or standard?
irish consultancy receives a monthly invoice from a UK software supplier (think Notion, Linear — but invoiced by the UK entity). the UK provider doesn't charge UK VAT, treats the supply as outside UK VAT scope.
on the irish side: this is a B2B service from a non-EU supplier. Article 44 + reverse charge applies. the Irish consultancy accounts for Irish VAT (23%) on the value, reclaims as input tax (if fully taxable business).
but i keep seeing irish businesses mishandle this — either charging nothing and not accounting for reverse charge, or double-counting. can anyone point to clean Revenue guidance?
2 replies
Revenue's guidance is VAT Tax and Duty Manual "Place of Supply of Services" — section 3.2 covers B2B services received from outside the EU. place of supply is Ireland (recipient's location), recipient self-accounts for Irish VAT via the RTD.
specifically: on the VAT return, add the value to T1 (output VAT, effectively self-charge), and to T2 (input VAT if the business is fully taxable). net effect: zero if fully taxable, real cost if partially exempt.
from the UK side — confirm the UK supplier is treating it correctly. UK B2B services to a non-UK business customer are outside UK VAT scope (place of supply is where the customer belongs). if they're invoicing without UK VAT, that's the right treatment.
if they ARE charging UK VAT, your Irish client can't reclaim it — the UK supplier has mis-treated the supply.
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