Charging VAT on goods
What are the place of supply rules for goods?
The place of supply rules determine whether a supply is subject to Value-Added Tax (VAT) in the State. The general rule is that supplies of goods in the State are subject to Irish VAT.
There are different place of supply rules for the following:
This section explains the place of supply rules for goods supplied in the State.
For further information on goods dispatched, transported outside of the State, imported or exported, see Goods and services to and from abroad.
Goods not dispatched or transported
The place of supply is the place where the goods are at the time of their supply.
- Example 1
A French tourist on a visit to Ireland buys a sweater from a retailer in Dublin. Irish VAT arises on the purchase, as the place of supply is where the goods are when the purchase takes place.
Goods involving installation or assembly
The place of supply is the place where the goods are installed or assembled.
- Example 2
A VAT-registered Irish company engages an EU-based company to supply and install a machine in its premises in Ireland. The place of supply is Ireland.
Supplies on board vessels, aircraft and trains
The place of supply is the place where the transport begins.
- Example 3
A private individual buys some goods while travelling on a ferry to Brittany which leaves from Rosslare port. The place of supply for VAT purposes is the place where the transport begins. Therefore Irish VAT applies on the supply in this instance. On the return journey from Brittany, French VAT applies to the purchase of goods.
Supply of natural gas or electricity
Where natural gas or electricity is supplied to a taxable dealer the place of supply is the place where the taxable dealer has their business.
The case of supplies of natural gas and electricity to a customer other than a taxable dealer is different. The place of supply is where the customer uses and consumes it. Effectively this is the place where the meter is located.
If the natural gas or electricity is not fully consumed by the customer, they are deemed for VAT purposes to have consumed it.
For further information see Tax and Duty Manual (TDM) VAT reverse charge – gas, electricity, gas and electricity certificates.
Next: Goods diverted to a private or exempt use (self-supply)