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.

The rules apply to the following: 

• the hiring of movable goods
• telecommunications services, telephone cards, radio and television broadcasting services when supplied to private individuals
• banking, financial and insurance services, including reinsurance and financial fund management (but excluding the provision of safe deposit facilities) when supplied to private individuals
• money transfer services supplied to persons in Ireland by an intermediary on behalf of a principal established outside the European Union (EU)

 that are provided:

• in Ireland but are used and enjoyed outside the EU
• by non established persons which are used and enjoyed in the EU.

What is the place of supply for services used and enjoyed outside of the EU?

If the place of supply of a service is Ireland, but the service is actually used and enjoyed outside the EU, it is deemed to be outside the EU.

An example is the hiring out of means of transport.

What is the place of supply for services used and enjoyed in the EU?

If the supplier is established outside the EU and the service is actually used and enjoyed in Ireland, the place of supply is Ireland. The service is liable to Irish Value-Added Tax (VAT) in the normal way.