Distance sales occur when goods are dispatched or transported to a private consumer (not VAT registered) in another European Union (EU) Member State, and the supplier is responsible for the delivery of the goods.
- mail order sales
- phone or tele-sales
- physical goods ordered over the internet.
Distance sales to Ireland
You must register and account for VAT in this State when your distance sales to Ireland exceed €35,000 in the calendar year.
If your distance sales to Ireland do not exceed €35,000 you may opt to register and account for VAT on your distance sales.
- Example 1
A VAT registered German trader supplies goods by means of mail order to private individuals in the State. If the German trader sells goods by mail order of more than €35,000 in a calendar year to private individuals in the State, the place of supply is Ireland, where the transportation ends. The German trader must register for VAT in the State and to account for Irish VAT on the goods.
Distance sales from Ireland
If you are making distance sales to private consumers in another EU Member State, you must charge Irish VAT until your sales reach the relevant threshold in that Member State. This VAT must be included in the T1 sales on your VAT 3 return.
If your distance sales exceed the appropriate threshold in an EU Member State, you must:
- register for VAT in that Member State
- account for VAT at the appropriate rates in that Member State
- include the value of the goods in the E1 box on your Irish VAT 3 return.
If you are engaged in distance sales to several Member States, you are required to register for VAT in each Member State in which your sales exceed the appropriate threshold limits.
You may opt to register for VAT and account for VAT at the appropriate rates on your distance sales in another Member State, even if the appropriate threshold limit is not exceeded. You should contact the authorities of the Member State concerned, who will provide details of the requirements for registration. Member State contact details.
Further guidance contains more detailed information on the VAT treatment of distance sales.
- Example 2
VAT registered Irish trader supplies goods by means of mail order to private individuals in Germany. If your distance sales to private individuals in Germany are below the German registration threshold of €100,000 and you have not elected to register for VAT in Germany, you must charge Irish VAT on the goods, where the transportation begins.