VAT on software services to customers outside EU

akash.it2002

I am a Software Engineer with a MNC and have been on permanent job role for close to 2 years. I finally decided to move in to contracting and had setup a limited company in Ireland for the same. I am recently offered a contract job by a US company.  They also have a small office in Ireland and from which i will be working as a contractor.  
In the offer letter its been mentioned that the "VAT isn't chargeable by contractor(me) as the services are provided to US company". I did some research myself and found from revenue website  that if the services are provided to customers outside EU(in this case US) VAT isn't applicable. 

Can you some one please explain me if this is true. Also i am planning to register my company for VAT as the Gross earnings might cross 100k annually and want to be totally compliant. Also limited company would be incurring setup costs initially (Laptops, Phones, furniture) and looking for VAT exemption on purchases. Would VAT be exempted on the purchases if the limited company don't pay VAT on the services it offer?

You need to get some specialist advice before signing anything.

If they have an office here in Ireland and you are working at that office then I think you should be charging VAT.

Don't take their word for it.
Or mine for that matter.


https://www.revenue.ie/en/vat/vat-on-services/when-is-vat-charged-on-services/general-place-of-supply-rules-for-services.aspx

akash.it2002

Thanks for the information and the link. I am in the process of getting in touch with an accountant to help with my finances & paperwork  and will try to get an expert advise on this matter.

ironclaw

Not applicable in your exact circumstance, but within the EU, VAT on services is applied in the country of acquisition. So for example, as an Irish firm and we supply a service to a company in Spain, the invoice is VAT free on our end.

Its very complex however. The Irish Revenue site is decent enough on the topic but I'd recommend an accountants review.

https://www.revenue.ie/en/vat/vat-on-services/when-is-vat-charged-on-services/vat-obligations-of-Irish-traders-supplying-services-to-business-customers-abroad.aspx