Revenue Legislation Services
This information leaflet which sets out the current practice at the date of its issue is intended for guidance only and does not purport to be a definitive legal interpretation of the provisions of the Value-Added Tax Act 1972 (as amended).
In this leaflet the term ‘foreign supplier’ refers to a supplier of goods or service who does not have a fixed place of business in this State. Suppliers not established in the State are frequently involved in supplying goods or services here. Such suppliers may also be involved in the purchase here of goods and services for their own businesses and end up paying Irish VAT on their purchases. The VAT treatment of such suppliers differs in certain ways from that applicable to suppliers established in the State and the purpose of this leaflet is to clarify the various issues affecting such non-established suppliers.
2.1 Non-established suppliers supplying taxable goods or services here are generally obliged to register and account for Irish VAT. The turnover thresholds for VAT registration which apply to Irish suppliers do not apply and such suppliers must register regardless of the level of their turnover.
2.2 Non-established suppliers are required to register where they:-
3.1 Distance sales covers mail order sales and phone or tele-sales made to persons in the State who are not taxable persons, by a supplier registered in another EU Member State where such supplier is responsible for delivery of the goods.
3.2 Where the value of distance sales to the State by a supplier in another EU Member State exceeds €35,000 in a calendar year that supplier must register for VAT in the State and must account for VAT at the appropriate Irish rates. If the threshold is not exceeded, the supplier may opt to register and account for VAT in the State on his or her distance sales.
3.3 Non-established suppliers making distance sales of excisable goods (spirits, tobacco etc.) to the State are obliged to register for VAT in the State irrespective of the level of turnover.
From 1 September 2008 non-established traders engaged in construction services, including plumbers, electricians and the like, as sub-contractors are not required or entitled to account for VAT on such services supplied to a principal contractor. VAT is accounted for by the principal contractor.
VAT on construction services that are not subject to Relevant Contracts Tax will continue to be taxed in the normal way and the non-established contractor must register and account for VAT. For example, a builder who builds an extension for a private individual, or an electrician who installs a new alarm system in a shop should charge and account for VAT on the supply. The reverse charge does not apply to these supplies.
As many construction service providers are involved in different types of contracts (e.g. a builder may be acting as principal in one contract, as a sub-contractor in another and supplying services that are not subject to RCT under another contract) it is important to be aware of how the system operates. Please refer to VAT Information Leaflet on Construction Services-New VAT rules for principal contractors and sub-contractors from September 2008.
Where Relevant Contracts Tax is deducted it should be calculated on the VAT exclusive amount. Application for repayment of this tax can be made to Revenue. Further details regarding this tax can be obtained by contacting the Office of the Revenue Commissioners, Government Offices, St. Conlan’s Road, Nenagh, Co. Tipperary Telephone 00353 67 33533, email: intclaims@revenue.ie
Where a non-established supplier supplies goods in the State which are installed or assembled, with or without a trial run, by or on behalf of that person and where the recipient of those goods in the State is one of the persons listed hereunder, then there is no requirement on the non-established supplier to register for VAT.
In such circumstances the customer must register and self-account for the VAT due. Typical examples of qualifying supplies are the supply, installation and assembly of exhibition stands, movable shop counters, computer systems or electrical generators.
Where a trader not established in the State supplies gas through the natural system or electricity to a recipient in the State where the recipient in the State is;
Where means of transport are hired/leased in the State by a lessor established in another EU Member State (who has no staff or establishment in this State), the lessor is not obliged to register for VAT in the State. VAT will be accounted for by the lessor in his/her EU Member State of establishment. A lessor established outside the EU, hiring means of transport in the State, is required to register for VAT in the State.
8.1 The general position is that a supplier who is engaged in business outside the State and who is not engaged in a business in the State which would require him/her to register for VAT may claim repayment of Irish VAT on most business purchases in Ireland. Claims for a refund must be made within six months of the end of the calendar year on which the VAT became chargeable. A separate Information Leaflet titled ‘Repayments to Unregistered Persons’ is available on this matter.
8.2 All enquiries relating to repayments to foreign firms not registered for VAT in the State should be made to Office of the Revenue Commissioners, VAT Unregistered Repayments, Sarsfield House, Francis Street, Limerick. (Telephone Lo-call 1890 252449 or 0035 36 310310, Fax 00353 61 488095), email unregvat@revenue.ie. Claim forms can be obtained from that office or from the Revenue website.
9.1 Non-established suppliers who are not obliged to register for VAT in the State and who are in receipt of taxable services from Irish traders on a regular and continuous basis may apply to have those services relieved from VAT. In this way, the necessity of applying to the Revenue Commissioners for VAT repayments is avoided.
9.2 Application for relief is made by way of Form VAT 60A. Suppliers established in EU Member States must submit a certificate of taxable status with their applications. Traders established outside of the EU must provide proof of economic activity issued by the competent authority of his/her own State. Form VAT 60A is available from the Office of the Revenue Commissioners, VAT Unregistered Repayments, Sarsfield House, Francis Street, Limerick. (Telephone Lo-call 1890 252449 or 00353 61 310310, Fax 00353 61 488465, email unregvat@revenue.ie
9.3 The relief is subject to periodic review, is valid for two years, but may be renewed on application. The relief does not apply to supplies of taxable goods.
Where a non-established supplier sends stock from another EU Member State to Ireland for the use of customers then the non-established supplier is not obliged to register for VAT. The VAT will be accounted for by means of EU intra-Community acquisition by the customer when the stock is drawn off. The warehouse keeper must in all cases be independent of, that is not an employee or agent of, the supplier.
In many cases, non-established suppliers have agents or representatives in this country who take orders and transmit them to their principals abroad. In some cases the principals send back the orders directly to the customer and, in other cases, to the agent or representative for distribution. Where orders are sent to its agent or representative for distribution the non-established suppliers must register even if the agent holds only a small stock of goods and irrespective of the level turnover. Agents or representatives of non-established suppliers will normally to be registered on their own account. Such agents should not quote their own VAT numbers in connection with the importation of goods by their principals or account for VAT in respect of the intra-Community acquisition of such goods.
12.1 Where a person not established in the State supplies cultural, artistic, entertainment or similar services in the State or person to a promoter or agent other than a private individual then there is no obligation on the non-established person to register and account for VAT. The person who received the service for business purposes or the promoter or agent who procured the service is the person who must self-account for any VAT due.
Where a premises provider allows a promoter not-established in the State to provide cultural, artistic, entertainment or similar services on the premises providers land then the premises provider is obliged to notify and furnish Revenue with certain information including the name and address of the promoter and details of the event not later than fourteen days before the event (see VAT Information Leaflet ‘Theatrical and Musical Events’).
Mobile traders not established in the State supplying goods in the State are obliged to register for VAT irrespective of their turnover level. A premises provider who allows such a person not established in the State to supply goods for consideration on that land for a period of less than seven days, is obliged to notify and furnish Revenue with certain information including the name and address of the mobile trader and the dates of supply not later than fourteen days before the mobile trader is allowed on to the land to supply the goods. The mobile traders are obliged to register for VAT in such circumstances.
13.1 Where registration for VAT is required, the office in the local Revenue District in which the supplies are being made is the appropriate office to which they completed VAT application should be addressed. In the absence of there being an identifiable district then applications should be addressed to Dublin City Centre Revenue District Office, 9-10 Upper O’Connell Street, Dublin 1. Where a non-resident construction contractor is required to register for VAT (see paragraph 4 above) he/she should in all cases contact this Revenue District office to register all countrywide non-established construction contractors.
13.2 Application forms TR1- Tax Registration form for Sole Traders, Trusts and Partnerships or TR2- Tax Registration form for Companies should be used for VAT registration. Form TR1 applies to sole traders, trusts and partnerships while form TR2 applies to limited companies. Both forms are available from the Revenue website at www.revenue.ie
Revenue may request VAT registered persons supplying taxable goods or services to provide security for the tax which becomes due as a result of sales made in the State. The security may be in the form of a bond issued by a bank licensed to carry on a banking business in the State or, alternatively, may be in cash, bank draft or in money order form.
A non-established supplier who supplies taxable goods or services in the State and who is registered for Irish VAT is subject to the same obligations as an Irish established traders in relation to the keeping in this country of the appropriate accounts and records required for the purposes of the tax and producing them at its place of business in this State to any authorised officer of the Revenue Commissioners when requested. Where the records are normally kept outside the State and their maintenance in the State would create serious difficulties, the appropriate Revenue District office may be prepared, subject to appropriate safeguards, to consider applications for the relaxation of certain of the requirements. There will be no relaxation of the requirement that the non-established supplier must produce the records for examination in the State if requested.
Where a non-established supplier imports goods in his/her own name that supplier is obliged to register for VAT in the State. The supplier will have a VAT liability for the onward supply of those goods. VAT borne at importation may be reclaimed.
17.1 In the case of goods consigned by non-established suppliers direct to Irish customers from outside the EU including postal packets exceeding €650 in value it is primarily a matter for the importer or his/her agent (usually the shipping company or a customs clearance firm) to present the necessary entry documents to Customs. Any VAT (or duty) payable is a matter for the importer.
17.2 In the case of parcel post importation’s exceeding IR €260 but not exceeding €650 in value, the goods are assessed by Customs and any VAT payable is collected from the consignee by An Post. In the case of parcel post importations not exceeding IR €260 in value, where the consignee is registered for Irish VAT his/her registration number should be shown on the Customs declaration form affixed to or accompanying the parcel. This declarations form must show the nature and value of the goods enclosed in the parcel.
17.3 The VAT due in respect of the importation of these goods will be deferred but must be accounted for in the VAT return for the period.
Under the system known internationally as Franc de Droits (F.D.D.) it may be possible for a sender in a non EU country to pay the tax and duty on goods imported by post into the State to the postal authorities in the country of despatch. The VAT will be transferred to the Customs authorities in this country through An Post to whom enquiries in the matter should be made.
There is no requirement on the non-established supplier to register for VAT in the State in respect of such supplies.
Enquiries regarding any issue contained in this Information Leaflet should be addressed to the Revenue District responsible for the taxpayer’s affairs. Contact details for all Revenue Districts can be found by on the Contact Details page.
This leaflet is issued by
VAT Appeals and Communications Branch,
Indirect Taxes Division,
Dublin Castle.
October 2008