VAT is/may be chargeable on sales/purchases made on the balancing and capacity markets. It is a matter for a market participant to account for any VAT chargeable in accordance with the relevant VAT legislation in that participant's jurisdiction, and pursuant to Council Directive 2006/112/EC, where applicable. As participants in the balancing and capacity markets operated by SEMO do not issue or receive VAT invoices SEMO has included the following table in this settlement document as an aide to participants. The parties to a transaction should check the table below as regards the application of VAT to sales/purchases in the market. Where both parties are established in the same EU member state (other than the Republic of Ireland or The United Kingdom), or the purchasing party is established in a country outside the EU, the parties should obtain their own independent VAT/GST advice as regards any VAT obligations they may have.
1. If the purchaser is established in RoI and the vendor is established in any jurisdiction: The purchaser is liable to account for VAT on the reverse charge basis
2. If the purchaser is established in UK and the vendor is established in any jurisdiction: The purchaser is liable to account for VAT on the reverse charge basis
3. If the purchaser is established in an EU country (other than RoI/UK) and the vendor is established in another EU country: The purchaser is liable to account for VAT on the reverse charge basis in accordance with Article 195 of the Council Directive 2006/112/EC
4. If the purchaser is established in an EU country (other than RoI/UK) and the vendor is established in the same EU country as the purchaser: VAT obligations to be addressed by vendor/purchaser
5. If the purchaser is established in an EU country (other than RoI/UK) and the vendor is established in a Non-EU country: The purchaser is liable to account for VAT on the reverse charge basis in accordance with Article 195 of the Council Directive 2006/112/EC
6. If the purchaser is established in a Non-EU country and the vendor is established in any jurisdiction (other than RoI/UK): VAT obligations to be addressed by vendor/purchaser
7. If the purchaser is established in a Non-EU country and the vendor is established in ROI or UK: No ROI or UK VAT/may be VAT obligations for purchaser
RoI = Republic of Ireland
UK = United Kingdom
EU country = Country in the European Union
Non-EU country = Country not in the European Union