Revenue Note for Guidance

The content shown on this page is a Note for Guidance produced by the Irish Revenue Commissioners. To view the section of legislation to which the Note for Guidance applies, click the link below:

Revenue Note for Guidance

91C. Non-Union scheme (where the State is Member State of consumption)

Summary

This section deals with the non-Union scheme as it applies to taxable persons who supply telecommunications, broadcasting or electronically supplied services to non-taxable persons within the State and who are therefore accountable persons in the State.

Details

(1) Subsection (1) clarifies that a person who makes taxable supplies in the State and who opts to use the non-Union scheme (whether in the State or another Member State) is an accountable person for the purposes of the VAT Consolidation Act 2010.

(2)(3)(4) Subsections (2), (3) and (4) provide that a person who applies the non-Union scheme (whether in the State or another Member State) and who files a return and pays the tax due in the State, in accordance with the provisions of that scheme, will be regarded as having fulfilled his or her obligations in relation to registration, returns and payments under the VAT Consolidation Act 2010. The returns and payments made under the provisions of the scheme will be regarded as if they were returns and payments which were required to be made under the normal return and payments provisions of that Act.

(5) Subsection (5) provides that the the conversion rate to be applied when completing the VAT return under the provisions of the non-Union scheme will be the rate as published by the European Central Bank for the last date of the calendar quarter, or if there is no publication on that date, the rate on the next day of publication – note that this is different to the normal conversion rules in section 37(4).

(6) Subsection (6) provides that a taxable person using the non-Union scheme is not entitled to deduct input VAT using the special scheme VAT return but is entitled to claim a refund from Revenue under the 13th VAT Directive.

(7) Subsection (7) covers obligations in relation to record keeping under the non-Union scheme. It obliges an identified person to keep full and true records for a period of 10 years from the end of the year in which the transaction was carried out.

Relevant Date: Finance Act 2019