VAT use and enjoyment provisions

The use and enjoyment rules ensure that services are taxed where the service is used and enjoyed. 

The rules prevent double taxation, non-taxation or distortions of competition. These provisions ensure that the place of the supply of a service is where the service is actually used and enjoyed.

The use and enjoyment rules only apply to the following areas:

  • Hiring of movable goods
  • Hiring out of means of transport
  • Telecommunications services
  • Financial services.

Take, for example, a case where the place of supply of a service is the State under the general rules. If that service is actually used and enjoyed outside the European Union (EU), then the place of supply is deemed to be outside the EU. 

Alternatively, in a case where the place of supply of a service is outside the EU, if that service is actually used and enjoyed in the State, then the place of supply is the State.

Hiring of movable goods

The place of supply of the hiring of movable goods is deemed to be the State where:

  • the place of supply would be outside the EU under the general rules
  • and
  • the service is used and enjoyed in the State. 

Hiring out of means of transport

The place of supply of the hiring out of a means of transport is deemed to be outside the EU where:

  • the place of supply would be the State under the general rules
  • and
  • the service is used and enjoyed outside the EU.

Telecommunications services

There are two use and enjoyment rules for telecommunication services.

Telecommunication services, radio and television broadcasting services and telephone cards

The place of supply of these services or cards to consumers is deemed to be the State where:

  • the place of supply would be outside the EU under the general rules
  • and
  • the services or card are used and enjoyed in the State.

Telecommunications and phone cards

The place of supply of telecommunications services or cards by an Irish established business to a consumer is deemed to be the State where:

  • the place of supply would be outside the EU under the general rules
  • and
  • the service or card is used and enjoyed in the State.

Financial services

Financial services include banking, insurance, reinsurance and financial fund management but exclude the provision of safe deposit facilities. 

The place of supply of financial services to consumers is deemed to be the State where:

  • the place of supply would be outside the EU under the general rules
  • and
  • the services are used and enjoyed in the State.

Money transfer services

The place of supply of money transfer intermediary services supplied to a principal established outside the EU is deemed to be the State where:

  • the money transfer services are provided to a person in the State
  • and
  • are in effect used and enjoyed in the State.