Readers’ forum: How does Northern Ireland base for customer affect VAT?

One of my clients is based in Manchester and has won a major contract to build an industrial chimney in Northern Ireland; the customer is also based in Northern Ireland and registered for VAT. It is a complicated deal and I am concerned about the VAT issues:

• The materials for the chimney will be shipped directly from Spain to Northern Ireland. As I understand it this shipment will be zero rated as far as Spanish and UK VAT is concerned because Northern Ireland is still part of the EU. Or is this wrong? My client will be invoiced for the goods by the Spanish supplier.
• My client will be invoiced for design and project management services by a Slovakian business. Does this mean that the Slovakian company must register for VAT in Northern Ireland because it is a land supply relevant to a building in Belfast and charge my...