VAT charged to Dublin based company?

KCLAccounting Registered Posts: 3
I have a client who is based in the UK. He is a pilot and provides services to a Dublin based company. He is expecting to earn over £85K within the year so would like to voluntarily register for VAT now.
My question is, would he be charging VAT to the Dublin based company? If not, he will not need to register for VAT if this is his only customer?
Really appreciate some help.


  • KoopaCooper
    KoopaCooper Registered Posts: 224
    So because of the business your client is doing, he expects his turnover to exceed the £85k VAT threshold, yes? Then yes, he will need to register for VAT at some point, and can voluntarily do so now if he wishes.

    Will he charge VAT to the Dublin-based company? Yes and no...because they're in an EU country, he will charge VAT but at the 0% rate, and they'll have to record a VAT reverse charge on their own VAT return (assuming for the moment that the Dublin-based company are also VAT registered; if they aren't, they don't need to do anything at all).

    The fact that his supplies will all be zero-rated isn't actually relevant here, it's still all within the scope of VAT and so counts towards the VAT threshold. He'll also still be able to reclaim all VAT he incurs on inputs (which he wouldn't if, say, his supplies were all exempt or outside scope).

    I hope this helps you and your client to understand his situation a bit better. :)
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  • KCLAccounting
    KCLAccounting Registered Posts: 3
    Thank you so much for your response, this has made it very clear :)
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