Acquisitions from other EU Member States

When are you required to register to account for 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.

Next: What are VIES and Intrastat?