Tax Representation in Ireland -6/28

Tax Representation in Ireland -6/28

Depending on their mode of business, foreign companies must set up a tax representation in Ireland. The tax representative is responsible for preparing the various declarations resulting from this implementation (VAT, Intrastat, ESL, etc.).

In some cases, you will be able to obtain Irish VAT refunds.

To be sure of the billing scheme to use, do not hesitate to contact professionals who will be able to guide you.

Tax representation

In general, the place of supply of business-to-business (B2B) services is the place where the recipient is established.

However, there are a number of exceptions to the reverse charge rule where non-established companies are required to register and account for VAT in the state, regardless of the level of their turnover.

Foreign companies are required to register when they:

  1. Import or supply goods into Ireland.
  2. Engage in the distance sale of goods to a person who is not taxable in the State
  3. Charge for the provision of services related to immovable property located in Ireland, including the services of builders, plumbers and the like, estate agents, architects and firms providing cleaning and security services and on-site surveillance in respect of the property
  4. Carry out the transport of goods or ancillary transport activities for a customer who is not subject to VAT when the transport service commences in the State
  5. Provide cultural, artistic, sporting, scientific or similar services to individuals in Ireland.
  6. Engage in the supply of electronic services from outside the EU to an individual whose habitual place of residence is in Ireland. These services include, but are not limited to, the following (Provision of websites, web hosting, remote maintenance of programs and equipment, provision of software and updating of the same, etc.

This list is not exhaustive, please, contact our specialists.

Non-established traders and intra-Community distance sales:

As a non-established trader, if you make intra-community distance sales of goods, you must register for Value Added Tax (VAT) in Ireland if the total value of your intra-community distance sales of cross-border telecommunications, broadcasting and electronics (TBE) goods and services to customers in all EU Member States exceeds €10,000 in a calendar year.

Non-established builders and subcontractors:

The treatment of Value Added Tax (VAT) for non-established builders and subcontractors varies depending on whether or not they are subject to the relevant contract tax ( CTT).

Foreign companies that provide construction services in Ireland and are not subject to the RCT are required to register and account for Irish VAT. Here are a few examples:

  1. An unestablished builder who builds an extension for a private individual must charge and account for Irish VAT on the supply.
  2. An unestablished electrician who installs a new alarm system in a shop must charge and account for Irish VAT on the delivery.

Caution: Since many construction service providers are involved in different types of contracts, it is important to know how the system works. For example, a builder may act as a principal in one contract, a subcontractor in another, and provide services that are not subject to the RCT under another contract.

In any case, it is important to make sure whether or not you need to register before starting any activity, our specialists are here to help you make the right decisions.

Indeed, failure to file a VAT return or late payment of VAT can each generate penalties of 0.0274% per day calculated on the amount due per reporting period.

Failure to report Intrastat results in a fixed penalty of 4 000€.

Don’t hesitate, contact us!

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