102. Refunds to taxable persons established outside the Community

This section provides for regulations which will allow for repayment of deductible tax (which is defined) borne on purchases and importations of goods and services made by a foreign business that is established outside the EU, where the business is not engaged in any taxable activity in the State.

This section enables non-established persons (including non-established persons supplying services which are taxable in the State under the reverse charge rules) to claim a refund.

(1) Deductible tax is the tax chargeable on goods and services used by the foreign trader for business purposes, but only if the VAT would be deductible if the foreign trader were accountable and registered for VAT in the State. It does not cover VAT on goods for supply within the State.

(2) Revenue may make regulations to repay non-established traders the deductible tax charged on supplies of goods or services to, or imports by, the foreign trader. See Regulation 37 of the VAT Regulations 2010.

(3) The section applies to non-established persons carrying on a business outside the EU, and who do not supply goods or services in the State other than

• certain services for which the recipient is accountable and liable under the reverse charge rules in Part 2 or
• telecommunications services, radio or television broadcasting services or electronically supplied services under the non-Union scheme.

Relevant Date: Finance Act 2020