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Acquisitions from other EU Member States

  1. Overview
  2. Self accounting for Value-Added Tax (VAT)
  3. What information on your ICAs must you submit to Revenue?
  4. When are you required to register solely because of intra-Community acquisitions (ICAs)?
  5. What are VIES and Intrastat?
  6. Intra-Community acquisitions (ICAs) of alcohol products
  7. Acquisitions of new means of transport from another Member State

When are you required to register solely because of intra-Community acquisitions (ICAs)?

Generally, Value-Added Tax (VAT) registered businesses are required to self account for all intra-Community acquisitions (ICAs) and are not subject to a separate threshold.

However, in the case of:

  • businesses that are wholly exempt

     and

  • other entities whose supplies are outside the scope of VAT

they are required to register in respect of their ICAs of goods where the value exceeds, or is likely to exceed €41,000 in any continuous period of 12 months.

Examples of such businesses or entities includes, but is not limited to, the following:

  • insurance companies
  • building societies
  • public authorities
  • hospitals
  • charities.

Such bodies must account for VAT on their ICAs at the appropriate rate. Generally, such bodies are not entitled to deduct VAT, including VAT incurred on ICAs.

  • Example

    An insurance company engaged in wholly exempt activities but VAT registered for ICAs acquires goods from a French company to the value of €5,000 for its own use in January 2024.

    The insurance company accounts, in its VAT Return for VAT of €1,150 (5,000 @23%). The insurance company cannot claim any input credit. The insurance company must pay Revenue €1,150.

    VAT 3 return for January and February 2024
    VAT returnAmount
    T1 (VAT on sales) €1,150
    T2 (VAT on purchases) Nil
    T3 (VAT payable) €1,150
    T4 (VAT repayable) Nil
    E1 (value of goods sent to other EU countries) Nil
    E2 (value of goods received from other EU countries) €5,000

Next: What are VIES and Intrastat?

Published: 13 May 2024 Print this page

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