Business to Business (B2B) services and Business to Consumer (B2C) services

Jan 03, 2021

 

Supply of services

The NI Protocol means NI will remain aligned with EU rules for trade in goods. NI will continue to follow UK rules for services.

After the transition period, if you supply services to or receive services from the UK (including NI) and vice versa, different place of supply rules for VAT on services may apply.

B2B services -ROI

The VAT treatment applicable to the supply of most business-to-business (B2B) services between Ireland and the UK will largely remain the same (i.e. the place of supply is the place where the business receiving the services is established).   Using the example of an ROI business, if you receive services from a company based in the UK after the transition period, in general, Irish VAT will be due on the services.  If you provide services to a company based in the UK after the transition period, in general, UK VAT will be due on the services.

B2C services -ROI

Business to consumer (B2C) services, in general, the place of supply is the place where the supplier is established. However, many services supplied for example from Ireland to non-business customers outside the EU will not be subject to Irish VAT.

Subject to the Use and Enjoyment provisions, VAT is not due on the following services supplied to non-business customers established outside the EU:

  • Transfers and assignments of copyrights, patents, licences, trademarks and similar rights.
  • Advertising services.
  • The services of consultants, engineers, consultancy firms, lawyers, accountants and other similar services, as well as data processing and the provision of information.
  • Obligations to refrain from pursuing or exercising, in whole or in part, a business activity or a right.
  • Banking, financial and insurance transactions including reinsurance, except for the hire of safes.
  • The supply of staff.
  • The hiring out of movable tangible property, with the exception of all means of transport.
  • The provision of access to, and of transport or transmission through, natural gas and electricity distribution systems. This includes the provision of other services directly linked thereto.
  • Telecommunications services.
  • Radio and television broadcasting services.
  • Electronically supplied services.

Services not included in the list above, supplied to a non-business customer outside the EU are subject to Irish VAT at the appropriate rate.

More information on B2B and B2C supplies of services is available in charging VAT on services and on Revenue.ie.

B2B services – UK

If a UK business buys services from outside the UK, the reverse charge applies. VAT will be accounted for on the UK VAT return and a simultaneous credit for the amount of VAT due will be taken (assuming you have full VAT recovery).  

See gov.uk for more guidance.

B2C services – UK

If a UK business sells service to customers in the EU, they will need to charge VAT at the usual rate.

See gov.uk for more guidance.

Exceptions in UK

There are different rules for some types of service, including:

  • hiring transport
  • land and property services
  • ‘electronically supplied services’ where there’s nobody directly involved in providing them (for example web hosting or music downloads)
  • events
  • restaurant or catering services