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

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

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

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

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.

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

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

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

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

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

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

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

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

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

Cross Border Trade – Imports into Ireland from a non EU Country 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

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

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

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

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

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

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

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

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