What revenue is relevant for VAT?

 

The type of revenue you have that is relevant to VAT depends on who you sold it to (business v customer), where you sold it (Ireland, EU or rest of world) and what you are supplying (goods v services).

Ireland (business or consumer):

 

If you sell goods or services to a business or consumer in Ireland, you must charge VAT at the applicable rate of VAT. This must be remitted to Revenue (less any allowable VAT expense claims).

 

EU (business):

 

If you sell to a business in Europe, you should obtain their EU VAT number. You then charge VAT using the ‘reverse-charge mechanism’ – they will then self-account for it in their own country.

EU (consumer):

 

If you sell goods to a consumer in Europe, you must charge VAT at the applicable rate in their country and register for VAT in that country (once a certain level is breached depending on the country).

If you sell services to a consumer in Europe, you must charge VAT at the applicable rate in Ireland.

 

Rest of World (not in EU or Ireland):

 

If you sell goods or services to a consumer or business outside the EU, you normally do not charge VAT.

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Mark Sweetman, ACA

Mark Sweetman, ACA

As a Chartered Accountant I've built my experience working within the SaaS and digital technology industries, growing early-stage businesses from the inside. I help digital entrepreneurs understand their companies and ensure they have all the tools they require to succeed and thrive. I love adopting new tech solutions and making use of these to increase efficiency within our clients' businesses.