Revenue Note for Guidance

35. Use and enjoyment provisions

Summary

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:

The place of supply of services provided in the State but effectively used and enjoyed outside the Community is deemed to be outside the Community.
The place of supply of services provided by persons established outside the Community but effectively used and enjoyed in the State is deemed to be the State.

Details

(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. Long-term hire means more than 30 days for caravans etc. and more than 90 days for vessels.
Hiring out of means of transport (B2C)	Short-term: where the customer picks up the transport. Long term: where the customer resides - but in the case of a pleasure boat which the customer picks up at the supplier’s establishment, at that location.
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