A non-established trader is a person who supplies goods or services and does not have a fixed place of business in the State.
The below notes from revenue.ie clarify the following issues
- when it is necessary to register and account for VAT
- obligations when providing construction services in the State
- what happens when goods are installed or assembled in the State
- supplying gas through the natural gas system or electricity
- what happens when stock supplied from a European Union (EU) Member State is held in the State for onward supply
- who accounts for VAT on goods delivered from suppliers outside the EU
- what happens when a non-established trader imports goods into the State.
Non-established traders supplying goods and services in Ireland
In general, the place of supply for business to business (B2B) services is where the recipient is established. The recipient must register for Value-Added Tax (VAT) and self account for Irish VAT on the reverse charge basis.
However, there are a number of exceptions to the reverse charge rule where non-established traders are required to register and account for VAT in the State, regardless of the level of their turnover.
Non-established traders are required to register where he or she:
- import goods into the State
- supply goods in the State
- supply goods and services on board vessels, aircraft or trains leaving the State for another European Union (EU) Member State
- engage in distance selling of goods to a person who is not a taxable person in the State
- engage in the supply of services connected with immovable goods located in the State, including the services of builders, plumbers and the like, estate agents, architects and firms providing cleaning and security services and on site supervision in relation to property
- engage in the transport of goods or ancillary transport activities for a customer who is not registered for VAT where the transport service begins in the State
- engage in cultural, artistic, sporting, scientific entertainment or similar services to private individuals in the State
- engage in the valuation of movable goods within the State, including contract work where the service is supplied to a private individual
- engage in catering services physically carried out within the State
- are established outside the EU and engage in the hire of movable goods for effective use within the State
- engage in the supply of a telecommunications service, or telephone cards, or radio or television broadcasting services from outside the EU to a private individual in the State in certain circumstances.
- engage in the supply of electronic services from outside the EU to a private individual whose usual place of residence is the State. These services include the following:
- website supply, web-hosting, distance maintenance of programmes and equipment
- supply of software and the updating of it
- supply of images, text and information, and making databases available
- supply of music, films and games, including games of chance and gambling games and of political, cultural, artistic, sporting, scientific and entertainment broadcasts and events
- supply of distance teaching.
Non-established traders and distance sales
Distance sales are supplies of goods made by non-established traders to private or non-taxable customers in the State where the trader is responsible for the delivery of the goods, such as:
- sales made over the internet
- mail order sales
- phone sales.
As a non-established trader, you must register for Value-Added Tax (VAT) if your distance sales to the State exceeds €35,000 in a calendar year.
You may also opt to register for VAT in the State on your distance sales if you do not exceed the €35,000 threshold.
You must then account for VAT on your sales at the appropriate Irish VAT rates.
Non-established traders making distance sales of excisable goods (for example, spirits or tobacco) to the State are obliged to register for VAT in the State irrespective of the level of turnover.
Non-established traders installing or assembling goods
A non-established trader is not required to register for Value-Added Tax (VAT) where:
- he or she supply goods in the State which are installed or assembled with or without a trial run, by or on behalf of the trader
- the recipient of those goods in the State is:
- a VAT-registered person
- a Government Department or a local authority
- a body established by statute
- an exempt person.
Typical examples include the supply, installation and assembly of:
- exhibition stands
- movable shop counters
- computer systems
- electrical generators.
Instead, the customer must register and self-account for the VAT due.
However, if the customer is a private individual, the non-established trader must register and account for Irish VAT.
Non-established traders supplying gas or electricity
A non-established trader is not required to register for Value-Added Tax (VAT), where he or she supply gas through the natural gas system or electricity to the following customers in the State:
- an accountable person
- a Department of State or a local authority
- a body established by statute.
Instead, the customer must register and self-account for the VAT due. Further guidance contains more detailed information on the VAT treatment of reverse charge of gas and electricity.
Stock supplied from the EU for onward supply in Ireland
A non-established trader is not obliged to register for Value-Added Tax (VAT) where they send stock from another European Union (EU) Member State to the State for use by an accountable person.
The VAT will be accounted for by the accountable person as an intra-Community acquisition when the stock is drawn off.
The warehouse keeper must, in all cases, be independent of the supplier.
A non-established supplier may reclaim VAT through the Electronic VAT Refund (EVR) system where he or she has suffered Irish VAT.
Importation of goods by a non-established supplier
Where a non-established trader imports goods in his or her own name that trader is obliged to register for Value-Added Tax (VAT) in the State.
The trader will have a VAT liability for the onward supply of those goods. VAT borne at importation may be reclaimed by the trader.
The above is republished from revenue.ie. See the Public Information Note below.