Services connected with moveable goods
This section outlines the Value-Added Tax (VAT) treatment of work on moveable goods such as:
- repairs
- valuation
- contract work.
The VAT treatment depends on whether you are making supplies to non-taxable persons or to VAT registered persons.
What is the VAT treatment of supplies to non-taxable persons?
Work on movable goods provided to non-taxable persons is deemed to be supplied where the work is physically carried out. This includes:
- repairs
- maintenance
- contract work
- valuation of movable goods.
What is the VAT treatment of supplies to VAT registered persons?
The tables below provide a high level summary of how the general place of supply rules apply to these services.
| Customer | Processor | VAT treatment |
|---|---|---|
| 1. Ireland | Ireland | No supply |
| 2. Ireland | OMS | No taxable transfer from Ireland provided goods, once work on them is complete, are returned to the same customer in Ireland. If not returned to the same customer in Ireland then the customer makes a taxable transfer to the OMS and may have to register for VAT there. The transfer should be entered in the VIES. |
| 3. OMS | Ireland | No ICA by customer provided goods once work on them is complete, are returned to the same customer in the OMS. If not returned to the same customer then the customer makes an ICA in Ireland and must register here. |
| Customer | Processor | VAT treatment |
|---|---|---|
| 1. Ireland | Ireland | Supply of services. Processor liable at rate applicable to the supply of finished goods. |
| 2. OMS | Ireland | Supply of services. Customer liable in Ireland if Irish VAT number quoted and the goods are dispatched out of the OMS where the work is carried out. VAT payable at the rate applicable to the supply of finished goods. If an Irish VAT number is not used or if goods remain in OMS then the processor is liable for VAT in OMS. |
| 3. Ireland | OMS | Supply of services. Customer liable in OMS under a reverse charge mechanism if goods are dispatched out of Ireland and the customer quotes their own OMS VAT number. If goods remain in Ireland or if OMS VAT number is not quoted, then the processor is liable at Irish VAT rate applicable to the supply of goods. |
| Customer | Repairer | VAT treatment |
|---|---|---|
| 1. Ireland | Ireland | No supply |
| 2. Ireland | OMS | No taxable transfer from Ireland provided the goods, once work on them is complete, are returned to the same customer in Ireland. If not returned to the same customer in Ireland then the customer makes a taxable transfer to OMS and may have to register there. Included in VIES. |
| 3. OMS | Ireland | No ICA by customer provided the goods, once work on them is complete, are returned to the same customer in the OMS. If not returned to the same customer then the customer makes an ICA in Ireland and must register here. |
| Customer | Repairer | VAT treatment |
|---|---|---|
| 1. Ireland | Ireland | Supply of services. VAT charged at the rate applicable to the supply of services. |
| 2. OMS | Ireland | Customer liable in Ireland under a reverse charge mechanism if Irish VAT number quoted. This will occur if goods are dispatched from the MS where the work was carried out. If the Irish VAT number is not used or if goods remain in the OMS then the repairer is liable for the VAT in OMS. |
| 3. Ireland | OMS | Customer liable in the OMS under a reverse charge mechanism if goods are dispatched out of Ireland and the customer quotes his or her OMS VAT number. If goods remain in Ireland or if the OMS VAT number is not quoted then the repairer is liable in Ireland. |
Abbreviations
OMS: other Member State
VIES: VAT Information Exchange System
ICA: intra-Community acquisition
VAT use and enjoyment provisions
The use and enjoyment rules ensure that services are taxed where the service is used and enjoyed.
The rules prevent double taxation, non-taxation or distortions of competition. These provisions ensure that the place of the supply of a service is where the service is actually used and enjoyed.
The use and enjoyment rules only apply to the following areas:
- Hiring of movable goods
- Hiring out of means of transport
- Telecommunications services
- Financial services.
Take, for example, a case where the place of supply of a service is the State under the general rules. If that service is actually used and enjoyed outside the European Union (EU), then the place of supply is deemed to be outside the EU.
Alternatively, in a case where the place of supply of a service is outside the EU, if that service is actually used and enjoyed in the State, then the place of supply is the State.
Hiring of movable goods
The place of supply of the hiring of movable goods is deemed to be the State where:
- the place of supply would be outside the EU under the general rules
- and
- the service is used and enjoyed in the State.
Hiring out of means of transport
The place of supply of the hiring out of a means of transport is deemed to be outside the EU where:
- the place of supply would be the State under the general rules
- and
- the service is used and enjoyed outside the EU.
Telecommunications services
There are two use and enjoyment rules for telecommunication services.
Telecommunication services, radio and television broadcasting services and telephone cards
The place of supply of these services or cards to consumers is deemed to be the State where:
- the place of supply would be outside the EU under the general rules
- and
- the services or card are used and enjoyed in the State.
Telecommunications and phone cards
The place of supply of telecommunications services or cards by an Irish established business to a consumer is deemed to be the State where:
- the place of supply would be outside the EU under the general rules
- and
- the service or card is used and enjoyed in the State.
Financial services
Financial services include banking, insurance, reinsurance and financial fund management but exclude the provision of safe deposit facilities.
The place of supply of financial services to consumers is deemed to be the State where:
- the place of supply would be outside the EU under the general rules
- and
- the services are used and enjoyed in the State.
Money transfer services
The place of supply of money transfer intermediary services supplied to a principal established outside the EU is deemed to be the State where:
- the money transfer services are provided to a person in the State
- and
- are in effect used and enjoyed in the State.
Published: 05 July 2019
