Does a US company have to include VAT for a project in Ireland?
Thread poster: Sandra Alboum

Sandra Alboum  Identity Verified
United States
Local time: 21:35
Member (2003)
Spanish to English
+ ...
Apr 9, 2008

It would appear my company has been awarded a very large contract by an Irish entity. Hooray! We quoted our services without VAT, though, because we are a US company. Ireland is asking us if we need to add VAT onto our price.

Can anyone help me figure this out? I'd ask my accountant, but April 15th is tax day here in the States and he is absolutely SWAMPED right now.

Thanks.
Sandra


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The Misha
Local time: 21:35
Russian to English
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There is no VAT in the US, Apr 9, 2008

nor are most services subject to sales tax. So why would you charge it?

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Steven Capsuto  Identity Verified
United States
Local time: 21:35
Spanish to English
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Not relevant for U.S. providers Apr 9, 2008

The United States does not have a value-added tax, so you don't need to charge it or include it in your price quotes.

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RobinB  Identity Verified
Germany
Local time: 03:35
German to English
You don't charge VAT.... Apr 9, 2008

Sandra Alboum wrote: It would appear my company has been awarded a very large contract by an Irish entity. Hooray! We quoted our services without VAT, though, because we are a US company. Ireland is asking us if we need to add VAT onto our price.


.... but of course the Irish company itself has to add "import VAT" to your invoiced amounts in its VAT accounts, while at the same time claiming an offsetting amount as input VAT. But they really ought to know that. A customer that asks *you* what the tax position is might warrant a little more investigation (e.g. a thorough credit check). I presume that you've agreed advance and progress payments?


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Orla Ryan  Identity Verified
Ireland
Local time: 02:35
Irish revenue link Apr 9, 2008

Have you checked: http://www.revenue.ie/index.htm?/leaflets/vat_eservices.htm ?

Orla


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Daina Jauntirans  Identity Verified
Local time: 20:35
German to English
+ ...
Even good clients ask questions like that Apr 9, 2008

I wouldn't automatically assume that the client is dodgy. I have good clients who ask me for my IBAN, which isn't used in the States either, but they pay the full amount promptly, etc. In some cases this information was requested by their banks, which is more disturbing to me!

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