Revenue Note for Guidance

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Revenue Note for Guidance

54. Remission or repayment of tax on certain imported goods

Summary

This section deals with tax relief in relation to imports. It provides for relief from import VAT in certain cases. It also provides for the repayment of VAT on certain imports consigned to other Member States.

Details

(1) Subsection (1) allows Revenue to remit or repay, in accordance with regulations, any tax charged in relation to—

(a) goods imported which had previously been exported;

(b) goods imported which have been or are to be re-exported;

(c) goods imported from the Shannon Customs Free airport on which tax had already been borne by a person who is not VAT-registered.

(2) Subsection (2) provides for the repayment of VAT charged on imports where the goods are consigned to non-taxable entities in other Member States.

(3) This repayment will only be made where Revenue is satisfied that the goods have been taxed in the Member State of final destination.

This provision mirrors the provisions of section 24(4) which provides that goods entering the State following import through another Member State in the circumstances outlined here will be taxed as intra-Community acquisitions in the State. The terms and conditions of this repayment may be set out in regulations to be made by Revenue – see section 120(7).

Example:

A French university imports equipment from America that is first landed at Rosslare. If not covered by Customs transit arrangements, VAT will be payable in Ireland at point of entry. However, VAT will also be charged on the intra-Community acquisition of the goods when they arrive in France. There is no provision at present whereby the French university could recover the VAT paid in Ireland at point of entry. This provision ensures that double taxation does not arise and that tax is ultimately charged only in the Member State of final destination of the goods.

Relevant Date: Finance Act 2019