Ireland Reverse charge mechanism - how does it work?


Jan 31, 2024
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United Kingdom

My company GSC (vat registered in England) just signed a contract with an Irish vat registered company (from now on Company A), we will need to provide some editorial services to them. I would like to know more about tax implications for Company A in Ireland. I won't add vat to my invoices due to the reverse charge mechanism and what I would like to know is the following: if I charge Company A £1000 (without vat), do Company A needs to pay vat in Ireland? And if they need to pay vat can they claim it back?
I'm asking this because on the contract between GSC and Company A, Company A stated: If Company A is required to withhold tax from any amount owned to GSC then the amount owned by Company A shall be deducted from the gross amount stated on GSC's invoice.

Thank you

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