Revenue Note for Guidance

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Revenue Note for Guidance

10. Certain supplies of goods – supplier not established in the State

Summary

This section provides for two situations where a recipient in the State – either a taxable person carrying on a business in the State or a public body – is accountable in respect of supplies of goods by persons not established in the State. The supplies that are covered are gas and electricity supplies and goods that are installed in the State. Section 5(1) provides that the non-established supplier is not accountable in respect of these supplies.

Details

(1) Where natural gas or electricity is supplied by a person not established in the State to a public body (defined in section 2(1)) or to a taxable person carrying on a business in the State then the recipient of the goods is deemed to be an accountable person and is liable for the VAT due.

(2) Where goods are installed or assembled in the State by or on behalf of a non-established person and where the supply is to a public body (defined in section 2(1)) or to a taxable person carrying on a business in the State, then the recipient of the goods is deemed to be an accountable person and is liable for the VAT due.

Example:

A supplier of studio equipment has a contractual agreement to supply, and install, equipment; the installation charge is included in the price of the goods. The contract is for the supply of goods (being equipment or machinery), which includes installation and/or assembly as part of the supply. The supply with installation or assembly of strong rooms, exhibition stands, moveable shop counters, generators/transformers and computer systems may also qualify.

The provision does not apply when the supply is a supply of services. This could arise where the value of the goods does not exceed two-thirds of the total contract price, including the installation and assembly element. In these circumstances, the non-established trader is obliged to register in respect of these services and account for VAT in the State in the normal way. The foreign supplier also continues to be required to register and account for VAT on the goods where the recipient is a private individual.

Relevant Date: Finance Act 2019