Revenue E-Brief

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Revenue E-Brief Issue 70, 21 December 2012

VAT treatment of the Hiring or Leasing of Means of Transport

The European Union (Value-Added Tax) (No. 2) Regulations 2012 (S.I. 429 of 2012) amend the Value-Added Tax Consolidation Act 2010 to provide for the transposition of part of the VAT Directive, which is required to be transposed into Irish law from 1 January 2013.

These regulations concern:

Transposition of the 2013 changes to the VAT Place of Services Supply Rules;

Article 4 of Council Directive 2008/8/EC (which amends Council Directive 2006/112/EC known as the "VAT Directive") introduces changes to the place of supply rules for services, following on from the substantial changes introduced in January 2010 and other changes introduced in January 2011.

From 1 January 2013:

  • The place of supply for the long-term hiring service of a means of transport to a non-taxable person is the place where the customer is established, has a permanent address or usually resides.
  • The place of supply for the long-term hiring service of a pleasure boat is the place where the supplier puts the boat at the customer’s disposal provided that the supplier’s place of business or fixed establishment is in that place.

A VAT Information Leaflet on the VAT treatment of the Hiring of Means of Transport (December 2012), including the above changes, has been published on Revenue’s website at: Taxes & Duties – Value Added Tax – Leaflets.