Acquisitions from other EU Member States

Self accounting for Value-Added Tax (VAT)

Under intra-Community acquisition (ICA) rules the purchaser is required to self account on a reverse charge basis. This means that the business customer must account for Value-Added Tax (VAT) on the purchase of goods from other Member States.

The supplier in the other Member State is considered to have made an intra-Community supply (ICS).

Under this system:

  • the supply is zero-rated in the Member State of dispatch as an ICS.
  • the purchaser is liable for VAT on the acquisition of the goods.
  • the purchaser must account for the VAT in their VAT return. The rate applicable is the rate of VAT which applies in their own Member State.
  • if they are entitled to an input credit  for the VAT payable on the ICA, this is reclaimed in the same VAT return


  • the purchaser must account for VAT on any subsequent supply of the goods.

Next: What information on your ICAs must you submit to Revenue?