Supply in State
Where there is a supply of goods or services within the State, then Irish VAT applies. There are rules in relation to the place of supply for goods and services which are set out in separate chapters. Where non-established business supplies goods or services in the state it must register for VAT. There is no annual threshold applicable below which they may opt not to register.
Establishment implies a presence sufficient to undertake the business. It will generally be a branch. The same criteria applies to liability for corporation tax. An establishment whether as a company a branch of non-resident company or personal residence is usually the threshold for when the profits and gains of non-resident entities are taxable in a country under double taxation treaties.
Place of Supply for Goods
Generally the place of supply of goods is where goods are situated when the sale takes place. The sale takes place when property in or the right to dispose of the goods pass.
Where a person supplies goods from a stock of goods held within Ireland there will generally be Irish VAT on the supply. The goods are in Ireland at the point of sale.
EU Consignment Stock
There is a special consignment stock relief applicable to EU businesses. Provided the goods are held in the country by an unconnected entity then subject to conditions the “call off “of stock is deemed to be a B2B cross-border sale.
Conditions apply. The trader must not be registered for Irish VAT. The seller must be to an Irish VAT registered recipient.
Where goods are dispatched or transported the place of supply is presumptively where the transport begins. Where goods are transported to a VAT registered business in the EU there may be an Intra-EU supply and acquisition, provided the relevant conditions are fulfilled. In this case, the place of supply is where the EU business is established and it self accounts for VAT.
In the case of distance sales to an unregistered person in another EU state place of supply is where transport ends. Prior to 1 July 2021, there were state-by-state distance sales turnover thresholds for registration in EU states of between €35,000 and €100,000. Below these thresholds, the place of supply was the supplier’s state.
Under the new rules ,subject only to an exemption of €10,000 EU wide the place of supply is where the nonregistered recipient is established/resident. In order to avoid having to register in multiple EU states, it is possible to use the One-Stop Shop system whereby the supplier may register with Revenue and account for VAT on sales in each EU state through it it. Revenue in turn accounts to the revenue authorities in the respective EU states in proportion to the sales in those states.
In some cases mentioned in later sections, a supplier may provide a service where the place of supply is outside his own state.In most cases, where the services are provided to a VAT registered person, the recipient is obliged to self account
Where the place of supply is outside the supplier’s home country and recipient is not obliged to self account, the non-established provider must register for VAT invoice collect and remit VAT to the revenue there.
Where the supplier is established outside Ireland, then the business registered recipient or other bodies having a VAT number are obliged to self account for Irish VAT. In other cases, the supplier will be obliged to register in Ireland invoice collect and remit Irish VAT.
The same rules apply when an Irish established provider provides services, where the place of supply is outside Ireland. The provider may have to register there, where the recipient is not a VAT registered business who self accounts.
Assembly & Property
Where goods are installed or assembled, the place of supply is where the goods are installed or assembled.
The place of supply of services in relation to immovable goods i.e. land and buildings is where the land or buildings are situated. The services must be directly connected with property. Revenue have issued guidance. This covers services directly related to land. It includes, for example
- services of estate agent valuers and conveyancing
- services related to construction work
- letting of real property
- provision of accommodation
- maintenance renovation and repair of buildings and infrastructure
- installation of equipment becoming part of property
- maintenance repair inspection supervision of machines or equipment
- direct property management other than property investment management
Certain other categories of services connected with property are not regarded as directly connected and are therefore not subject to the special place of supply rules.
Work on a valuation undertaken in relation to movable goods is situate where the work is undertaken.
Construction services are subject to separate rules linked to the relevant contract tax system. VAT may be collected by the principal contractor (as defined.)
Other Special Rules
Cultural sporting artistic scientific educational entertainment and like services are situated where they are performed. This may mean that the performers and person supplying the services may need to register in Ireland when they are provided in Ireland. Where there is an intermediary or promoter, it may be obliged to self account.
Passenger transport services are supplied where the transport takes place. Where it crosses international borders, it may be provided in more than one place and must be proportioned apportioned accordingly. such services are exempt in Ireland.
The carriage of goods within Ireland on behalf of the person transferring them outside of the EU is zero rated.
Where goods are carried on behalf of a business or person established in another state who or which is not tax registered, the place of supply is that of departure. Where the transport takes place within the state the place of supply is the state.
The carriage of goods supplied to VAT registered businesses cross-border is subject to the general reverse charge rule.
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