Revenue Note for Guidance
This section covers a number of specific use and enjoyment provisions in relation to the place of supply of services. The purpose of the use and enjoyment rules is to prevent double taxation, non-taxation or distortions of competition and to better reflect the place where service is actually received (which, in turn, is the place of taxation). The section covers two types of situations:
(1) The hiring out of movable goods – actual place of supply outside EU but used and enjoyed in the State – place of supply deemed to be the State.
(2) The hiring out of means of transport – actual place of supply in the State but used and enjoyed outside the EU – place of supply deemed to be outside EU.
(3) Business to Consumer (B2C) supplies of telecommunications, radio/television broadcasting or phone card – actual place of supply outside EU but used and enjoyed in the State – place of supply deemed to be the State.
(4) B2C supplies of telecommunications service or phone card – actual place of supply outside EU but used and enjoyed in the State – place of supply deemed to be the State.
(5) B2C supplies of financial and insurance services, including reinsurance and financial fund management (but excluding the provision of safe deposit facilities) – actual place of supply outside EU but used and enjoyed in the State – place of supply deemed to be the State.
(6) Money transfer services supplied to persons in the State by an intermediary on behalf of a principal established outside the EU – actual place of supply outside EU but used and enjoyed in the State – place of supply deemed to be the State.
Table 4.1: Summary of place of supply rules for services (unless subject to exceptions or effective use and enjoyment provisions)
Country of establishment of supplier |
Country in which customer established |
Place of supply |
Person liable to account for Irish VAT |
B2B |
|||
Ireland |
Other EU State |
Other EU State |
No Irish VAT |
Outside EU |
Outside EU |
No Irish VAT |
|
Other EU State |
Ireland |
Ireland |
Customer |
Outside EU |
Ireland |
Ireland |
Customer |
B2C |
|||
Ireland |
Other EU State |
Ireland |
Supplier |
Outside EU |
Depends on service – outside EU if listed in section 33(5) |
Supplier (if VAT occurs) |
|
Other EU State |
Ireland |
Other EU State |
No Irish VAT |
Outside EU |
Ireland |
Depends on service |
Supplier (if taxable in the State) |
Table 4.2: Place of supply rules for services – overview
Services |
Place of supply rule |
Comments |
Supply of services connected with immovable goods. |
Where the goods are located. |
A specific provision applies (see section 12(2)) where the service provider is outside Ireland and the work is carried out in Ireland, under which VAT is accounted for by the Irish business recipient on a reverse charge basis. But subject to the exceptions as listed under section 12(2) being section 33(2)(b), (ba) and (c) under which the service provider from abroad is obliged to register and account for the VAT arising in the State. |
Passenger transport services (B2B and B2C) |
Where the passenger transport takes place. |
|
Intra-Community transport of goods B2C |
Place of departure. |
|
Intra-Community transport of goods B2B |
Where the customer is established |
|
Admissions and ancillary services in relation to cultural, artistic, sporting, scientific educational, entertainment or similar events including tickets granting access to such an event (B2B) |
Where the event takes place. |
|
Admissions and ancillary services in relation to cultural, artistic, sporting, scientific educational, entertainment or similar activity, including services of the organiser or tickets granting access to such an activity (B2C) |
Where the activity takes place |
|
Ancillary transport services, valuations/work on movable property |
Where the services are physically carried out. |
General rule with reverse charge applies for B2B |
Restaurant and catering services |
Where the services are physically carried out |
Example: A catering supplier from another Member State who supplies catering services in the State is required to register and account for Irish VAT on those catering services in the State. |
Restaurant and catering services for consumption on board ships, planes and trains |
The point of departure |
This mirrors the rules for supplies of goods for consumption on board |
Hiring out of means of transport (B2B) |
Short-term: where customer picks up the transport. Long term: General B2B rules. |
Short-term hire means up to 30 days for cars, vans etc. and up to 90 days for vessels. |
Hiring out of means of transport (B2C) |
Short-term: where the customer picks up the transport. |
|
Telecommunications services, radio or television broadcasting services or electronically supplied services (other than services referred to in section 33(2)(ba) and to which section 34(c) relates) |
Where the customer is established, has a permanent address or usually resides. In the case of supplies made to non-taxable persons generally where the customer is established, has a permanent address or usually resides in accordance with section 34(kc) or where the supplier opts to have such services which are below the annual turnover of €10,000 taxed in accordance with section 34(kc). |
Exceptions to this rule are covered under the ‘Supply of services connected with immovable goods’ rules above. A further exception arises where a supplier’s annual value of telecommunications services, radio or television broadcasting services or electronically supplied services made to non-taxable persons are below the annual turnover of €10,000 and the supplier treats the place of supply in accordance with the provisions of section 34(kd). |
Relevant Date: Finance Act 2020