Revenue Note for Guidance
This section specifies the rate of VAT chargeable on the supply of the service of contract work. It provides that the rate applicable to the service is the rate that would be applicable if that supply was a supply of the goods handed over to the customer.
If an Irish printer is printing a book for a publisher in Ireland, the rate of VAT applicable to the printing work is the zero rate as this is the rate that would apply to the supply of the book itself. Similarly, if the printer is printing stationery for a customer in Ireland, the rate of VAT applicable to the printing work is the 23% rate.
The rule on the rate to apply to contract work does not interfere with the zero rating which already applies to services carried out on goods for customers who are outside the EU.
Relevant Date: Finance Act 2019