Ireland for International Business..
Irish Agency Company Low Tax International Invoicing Company
o Low Tax International Trading vehicle –
o Excellent for situations where an reputable image profile is required-
o Can be used effectively in EU VAT triangulation situations-
An Irish agency company is formed to operate as a agent for a principal company-the two companies sign an agreement which specifies the terms of the agreement between them. In effect the Irish company acts as a fiduciary or trading agent for the principal company and will conduct sales and purchases on an international basis.
All business and sales is then conducted in the name of the Irish company, but on behalf of the principal company. The customer enters into a contract with the Irish company, is invoiced by them and pays the invoices into the bank account of the Irish company. Income is then remitted to the principal company by the Irish company after deduction of an agreed commission. The Irish company is managed and controlled in accordance with the Irish Companies Office requirements by the company’s officers, as is the bank account of the Irish company.
It should be noted that the Irish company cannot trade within Ireland or with any Irish businesses.
The Irish company will pay tax on the profits which it makes in accordance with the agency agreement. This will be at the normal Irish Corporation Tax rate which starts at 12.5%.
Accounts must be filed both with the Irish Revenue Commissioners (Irish tax authority) and with the Irish Companies Registration Office (Irish public record of companies). VAT registration for a Irish agency company is available where appropriate.
Irish Incorporations will undertake all aspects of corporate representation to ensure the structure is correctly managed.
The Irish Company enters into agreements, on behalf of the IBC principal company, to buy machine parts from an German manufacturer and supply the same goods to UK customers.
The German company will invoice the Irish Company for the market value of the machine parts, quoting their respective VAT numbers and reflecting the Irish Company’s VAT number on their invoice, thus zero rating the supply and VAT charge.
The Irish Company will take title of the goods in Germany and arrange delivery to the UK customer without importation into Ireland. At this time the Irish Company will issue an invoice to it’s UK customers, again reflecting the Irish Company’s VAT number and that of the UK Company, in order to zero rate the supply for VAT purposes.
The machine parts are thus delivered to the UK customer with all documentation reflecting the Irish Company and not the original German supplier.
Once the goods have been received and accepted in the UK, the UK customer will pay the invoice received from the Irish Company directly into the bank account provided by the Irish Company.
On receipt of the funds, the Irish Company will in turn settle the invoice received from the German Company.