PART 4 – PLACE OF TAXABLE TRANSACTIONS

Overview

This Part, which has 3 Chapters, contains the provisions relating to the place of taxable transactions for VAT. These “place of supply rules” are central to VAT. If the place of supply is outside the State or is deemed to be outside the State, then Irish VAT does not arise.

Chapter 1 deals with the place of supply of goods. It covers the general rules, rules in relation to goods supplied to non-registered persons and special rules for the place of gas and electricity supplies (sections 29 to 31).

Chapter 2 covers the place of supply of intra-Community acquisitions (section 32).

Chapter 3 deals with the place of supply of services. It includes definitions, the general rules on place of supply of services, exceptions to those rules and use and enjoyment provisions (sections 33 to 35).

Chapter 1 - Place of supply of goods

29. General rules

Summary

This section defines the place at which a supply of goods is deemed to take place. The place of supply of goods determines whether or not the supply is liable to VAT in the State. Generally speaking, if the supply is in the State, then the goods are subject to VAT in the State.

Details

(1)(a) Where goods are dispatched or transported, other than under a distance-selling arrangement (see section 30), the place of supply is where the transport begins. This is subject to subsection (2).

(1)(b) Where goods are installed or assembled by or on behalf of the supplier, the place of supply is the place where the goods are installed or assembled.

Example: A UK-based company supplies and installs a machine in an Irish company’s premises in the State. The place of supply is Ireland. The UK company does not have to register for VAT in the State. The recipient Irish company self-accounts for the VAT on the supply (see section 10(2)), and can claim a simultaneous input credit if the goods are used for the taxable business.

(1)(c) Where goods are not dispatched or transported, the place of supply is deemed to be the place where the goods are at the time of their supply.

Example: Goods bought by foreign tourist from a retailer in the State. Irish VAT arises on the purchase.

(1)(d) In the case of goods supplied on board vessels, aircraft and trains during intra-Community transport the place of supply is the place where the transport begins.

Example: A private individual buys goods on board the Dublin-Holyhead ferry, which leaves from Dublin. Place of supply is the State and Irish VAT arises.

(2) Where goods are imported into the State from outside the Community and subsequently sold, and delivered directly, to a customer in the State, the place of supply is not the place where the transport began (as per subsection (1)(a), but is deemed to be in the State.

Relevant Date: Finance Act 2019