Charging VAT on goods

Updated on February 8, 2022

Overview

This part talks about:

where there are rules about how many goods one person can buy at once
When a business gives away goods as gifts, gives them away as samples, or replaces them, they are either taxed or not taxed.
When premises owners give their space to people who aren’t already well-known traders or promoters and the goods they sell aren’t taxed, what will happen?
Goods that are taxed:
Everything that moves and stays where it is called “goods.” They can be new and used.

All of these are “goods.”

electricity and gas are two things

Any kind of power or heat, refrigeration, or ventilation can be used in this case.
Many people don’t think of goods as things that move or money, but they are.

What is a supply of goods?

Some things come with having goods:

a commission-based sale of movable goods by an auctioneer or agent who sells the goods in his or her own name but on behalf of someone else.

goods that are not used for business can be taken by a sheriff or someone else who has the authority to do so.
People who pay taxes move goods from a business in the State to a business in another EU country. The goods are being given out for business.

What are the place of supply rules for goods?

In the State, people who live there pay Value-Added Tax (VAT) on goods and services that are made there. All goods sold in the state are taxed by the Irish VAT, which is a tax.

For the following:

send, or move: goods that are not sent or moved: goods that are sent or moved:
Items can be sold in the State.

For more information about goods and services that are sent, moved, imported, or exported outside of the United States, check out Goods to and from outside of the United States for more information.

Items that haven’t been moved or sent yet.
If you give away something, it might look like you gave it away in a certain place, but this isn’t true.

There are people from France who go to Ireland, but not all of them. A sweater is bought in Dublin while they are there. Irish VAT is charged when someone buys something. So, when people buy things, the tax comes up.

There are things that need to be put together.
In this case, the place where the goods are set up or put together is called the place where they are given.

They all have something to eat.
At first, they come from there.

The gas or electricity company will be able to get natural gas or electricity for you in this case.
When a business that is taxed gets natural gas or electricity, there is a place to get it.

It doesn’t cost anything to buy natural gas or electricity from someone who isn’t a taxed person. In fact, you can see it.

You still have to pay VAT if you buy natural gas or electricity and don’t use all of it.

People who work for us have a Tax and Duty Manual that talks more about the VAT reverse charge for gas and electricity and the gas and electricity certificates. Isn’t that what it also talks about? (TDM).

Goods diverted to a private or exempt use (self-supply)

The term “self-supply of goods” refers to when someone who is supposed to use the goods does not.

You would have usually reclaimed the Value-Added Tax (VAT) that you paid when you bought these things. If you do this, you have to pay back the VAT that you paid.

During March 2021, a jeweller will take a watch from their stock-in-trade for their own use.

Details for personal use

The cost of the watch, including VAT, is €1,230.
Including the VAT at a rate of 23% costs €230.
The jeweler would usually be able to get a tax break. Jewellers must now account for VAT on goods that are used for personal use.

The jeweler has to account for how much he or she makes on their own. During the March to April 2021 VAT return, they will raise their VAT on sales (T1) by €230, which will finish the process.

Another example of this is Example 3.

VAT on gifts, advertising goods, samples and replacements

On this page, we tell you when the following are subject to Value-Added Tax (VAT):

Samples of goods that can be used to advertise products.
Gifts of goods used in your business are taxed. In other words, if their cost to you is less than €20 (before VAT), they aren’t charged VAT.

On gifts that cost more than €20, you have to pay VAT on them.

The chargeable amount is the price you paid when you bought it (excluding VAT).

Gifts that cost more than €20 do not get a tax break (excluding VAT).

The rate of VAT depends on the goods that are being sold.

Samples of advertising goods and industrial goods
Customers who get advertising goods and industrial samples for free in reasonable amounts aren’t taxed. Even if the €20 limit is broken, this is still true.

It must be in a form that isn’t usually sold to the public for advertising goods and industrial samples to be used for advertising.

Replacements for goods
Replacement goods that are given away for free as part of warranties or guarantees on the original goods are not taxed.

Further guidance has more information about how VAT is applied to gifts and promotional items.

Special rules for business premises and landowners

When new traders and new promoters sell goods or services on the premises or land of premises owners, there are rules for them to follow.

Premises or land given to a trader who isn’t already well-known.
Any person who wants to sell goods on a premises for less than 28 days must be told by the person who owns the place.

Within 14 days, you must give this information to the person who isn’t already set up.

how to get the name and address of a person who isn’t already well-known
By not giving these details, you could be held responsible for the VAT that the person who isn’t already established owes.

Premises or land given to someone who isn’t already well-known.
A promoter who isn’t well-known can offer cultural, artistic, entertainment, or other services on your property or land. In this case, you must give Revenue the following information at least 14 days before the event:

People who are organizing the event will give you their name and address.

When is a supply of goods not taxable?

It doesn’t apply to Value-Added Tax (VAT) when:

When goods are used as collateral for a loan or debt, the owner of the goods changes.
When a business is passed from one person who is responsible for it to another person who is.
Goods that come with a warranty or guarantee and aren’t charged.
Gifts worth less than €20.