Freight Transport charging VAT on uk domestic movements to non uk customer

[DOLLY]

Hi hoping someone can enlighten me

I am providing a domestic UK to UK service of transport of goods by road (perishables) 
I have been subcontracted by a freight agent in Dublin to collect from ABC business in Brighton
and deliver to  RRR Business in London.

Then billing customer in Dublin Ireland, this is not on the back of an import or export and as there are exceptions to the rules of services within transport road haulage I am frazzled as to 
do I charge my customer VAT ? 

I have attempted to get help from HMRC ……….

[Trevor S]

See HMRC’s notice 744B, sections 3 and 4:
https://www.gov.uk/guidance/vat-on-freight-transport-and-associated-services-notice-744b

Under section 3, the place of supply for your services is where your customer is – i.e. Ireland. The example at the end of section 3.4 shows that this is still the case even when the whole of the journey is within the UK. The location of the journey is only significant where customers are not businesses.

Therefore you don’t need to charge UK VAT to your customer.

The last paragraph of section 4.3 does say that you may be liable to register for VAT in your customer’s country. I’ve found the following guidance on the Irish Revenue’s website, which details when a foreign supplier must register for Irish VAT regardless of their turnover there:
https://www.revenue.ie/en/vat/foreign-suppliers-doing-business-in-ireland/non-established-traders-supplying-goods-and-services-in-ireland.aspx

The service that you’re supplying isn’t covered by the list, because (presumably) your customer is VAT registered there, and no part of the journey is in Ireland. Your customer will pay your invoice (no VAT), and they will then be required to account for Irish VAT with the Irish Revenue.

[DOLLY]

Thank you so much for making that so much clearer it makes sense now.

[Author]

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