Value Added Tax

1. Value Added Tax Cross Border Trade • VAT is an EU Tax • VAT introduced in Ireland on 1 November 1972 in preparation for entry to the EEC in 1973 • Harmonised across the EU

2. Value Added Tax Place of supply • The place of supply determines where a transaction is subject to VAT • Goods and services are only liable to Irish VAT when the place of supply is Ireland • Where supplier and customer are located in Ireland the place of supply is straightforward

3. Value Added Tax Place of supply of goods • The general rule is the place of supply is where the goods are situated when the supply takes place. • In transactions involving the transport of goods, the place of supply is where the goods are when the transport begins

4. Value Added Tax Place of supply of goods • Where the goods are assembled or installed by the supplier the place of supply is where the assembly or installation takes place • Goods supplied on board vessels, aircraft or trains in a member state are supplied where the transport begins

5. Value Added Tax Place of supply of goods • The place of supply of distance sales between EU member states depend on a number of factors.

6. Value Added Tax Cross Border Trade of Goods • Goods leaving Ireland to an EU Country • Goods coming into Ireland from an EU Country • Goods leaving Ireland to a non EU Country • Good coming into Ireland from a non EU Country

7. Value Added Tax Cross Border Trade – Intra-Community Dispatches – Goods from Ireland to EU Country • Depends on whether customer is registered for VAT in other EU country • Goods sold to a non-registered person are subject to Irish VAT

8. Value Added Tax Cross Border Trade – Intra-Community Dispatches – Goods from Ireland to EU Country • Goods sold to registered persons are supplied at the zero rate, if • The registered person (the customer) provides their VAT number to the Irish supplier • The Irish supplier quotes the customer’s VAT number on the invoice issued

9. Value Added Tax Cross Border Trade – Intra-Community Acquisitions – Goods from EU Country to Ireland • Goods sold by VAT registered person in an EU country to a VAT registered person in Ireland • Irish customer provides their VAT number to the EU supplier • EU supplier quotes the Irish VAT number on the invoice

10. Value Added Tax Cross Border Trade – Intra-Community Acquisitions – Goods from EU Country to Ireland • Goods sold by VAT registered person in an EU country to a VAT registered person in Ireland • EU supplier charges VAT at the zero rate • Irish customer self-accounts for the VAT in Ireland

11. Value Added Tax Cross Border Trade – Intra-Community Acquisitions – Goods from EU Country to Ireland • Self Accounting for VAT on an intra-community acquisition: • The invoice from the EU supplier will show the net amount and zero VAT • The Irish customer includes the net amount as a sale and increases their Output VAT at the relevant rate • On the same VAT return, an Input Credit is claimed for the same amount • Net effect is nil

12. Value Added Tax Cross Border Trade – Intra-Community Acquisitions – Goods from EU Country to Ireland • Exempt Suppliers • Must register for VAT for intra-community acquisitions when they acquire goods from another EU country in excess of €41,000 in any 12 month period • If the threshold isn’t reached the exempt customer will be charged the VAT from the EU country of the supplier

13. Value Added Tax Cross Border Trade – Intra-Community Acquisitions – Goods from EU Country to Ireland • Exempt Suppliers • If the threshold is reached, the exempt customer must register for VAT and self-account for VAT on these intra-community acquisitions. • However, the exempt supplier is not entitled to an Input Credit

14. Value Added Tax Cross Border Trade – Exports from Ireland to a non EU Country • VAT charged at the zero rate

15. Value Added Tax Cross Border Trade – Imports into Ireland from a non EU Country • Irish VAT charged at the point of entry on total cost including all taxes and duties, at relevant rate

16. Value Added Tax Place of supply of services – general rules • For business to business supplies of services the place of supply is where the customer is located • For business to customer supplies of services the place of supply is where the supplier is located

17. Value Added Tax Place of supply of services - exceptions • Services connected with land and buildings are deemed to be supplied where the land or buildings are located whether supplied to a business or private customer • Admission to cultural, artistic, entertainment, sporting, scientific and educational services are taxed where they are performed

18. Value Added Tax Place of supply of services - exceptions • Passenger transport is supplied where the transport services are actually performed • Restaurant and catering services are supplied where these services are performed

19. Value Added Tax Place of supply of services - exceptions • The place of supply for the provision of the following services to private customers outside the EU will be where the customer is located: • Hiring out of movable goods • Advertising services • Services of consultants, engineers, lawyers, accountants

20. Value Added Tax Place of supply of services - exceptions • The place of supply for the provision of the following services to private customers outside the EU will be where the customer is located: • Telecommunication services • Radio and television broadcasting services • Services performed electronically • Banking and insurance services

21. Value Added Tax Place of supply of services - exceptions • The place of supply for the provision of the following services to private customers outside the EU will be where the customer is located: • Supply of staff • Transfer of licences and similar rights • Electronically supplied services

22. Value Added Tax Irish business receiving service from other EU member state and place of supply is other Ireland • Provide VAT number to supplier • The supplier will charge zero VAT • Irish customer self-accounts for VAT

23. Value Added Tax Irish business supplying service to other EU member state and place of supply is other EU member state • Obtain VAT number of business customer • Include it on invoice • Charge zero Irish VAT • Business customer will self account for VAT