WAREHOUSING – STORAGE

Rate

Standard rate

Remarks

The supply will be taxed when the customer is established and the warehousing/storage of the items is not specific to a certain area of an immovable property designated by the owner for use by the customer (reverse charge).

Value-Added Tax Consolidation Act 2010 (VATCA 2010) Ref

Section: 46(1)(a)

Overview

A full list of goods and services can be browsed, explored by the A to Z links, or searched using the search box in the VAT rates database.

In the VAT rates database, the VAT treatment is consistent with current practice. The content is updated on a regular basis and may change as practice evolves.

It is not intended to be a legal declaration or a substitute for legal advice.

The legislation governing the VAT rating of products and services is found in the Value-Added Tax Consolidation Act of 2010.

The VAT rates database has a comprehensive list of goods and services that can be browsed, investigated using the A to Z connections, or searched using the search box.

The VAT processing follows the existing practice of the VAT rates database. The data is updated on a regular basis and is subject to change as the field of practice develops.

It is not meant to be a legal opinion or a replacement for legal advice.

The Value-Added Tax Consolidation Act of 2010 contains the rule that determines the VAT rating of goods and services.

VAT on goods

Goods are subject to VAT.
VAT and the supply of goods, the margin system, and special schemes are all included.

What is a supply of goods?

The following items are included in a product supply:

the commission sale of moveable goods by an auctioneer or agent working in his or her own name but on behalf of another person; the delivery of goods under a hire-purchase contract; the distribution of immovable goods – a developed property a sheriff or other person acting with statutory authority seizing property the filing of an application by a responsible party
Appropriation of goods by a responsible person for purposes other than his or her business, such as producing energy, gas, or any other type of energy, heat, refrigeration, or ventilation, or the movement of goods from a taxable person’s business in one European Union Member State to another. In this case, the goods are being supplied for business objectives.

What is the place of supply rules for goods?

The rules governing the place of supply decide whether a supply is subject to VAT in the state. The general norm is that all items supplied within Ireland are liable to Irish VAT.

The following items have a varied place of supply rules:

goods that are not dispatched or transported imports exports goods that involve installation or assembly supplies on board vessels, aircraft, and trains supply of natural gas or electricity distance sales goods that are dispatched or transported
This section describes the guidelines regarding where commodities are supplied in the state.

Goods and services to and from abroad contain more information on goods dispatched, transported outside of the state, imported, or exported.

Goods not dispatched or transported

The location of the items at the moment of supply is assumed to be the place of supply.

Example 1: A French visitor in Ireland purchases a sweatshirt from a Dublin store. The place of supply is where the items are when the transaction is made, hence Irish VAT is charged on the purchase.

Goods involving installation or assembly

The location where the items are placed or assembled is known as the point of supply.

Example 2: An EU-based company is hired by a VAT-registered Irish company to provide and install a machine at its Irish facilities. Ireland is the source of supply.

Supplies on board vessels, aircraft and trains

The point of supply is where the transportation begins.

Example 3: A private individual purchases products while travelling to Brittany on a ferry that departs from Rosslare port. Because the place where the transportation originates is the place of supply for VAT purposes, Irish VAT is applied to the supply in this case. On the way back from Brittany, the purchase of products is subject to French VAT.

Supply of natural gas or electricity

The site of supply for natural gas or electricity is the location where the taxable dealer conducts their business.

The point of supply is where the natural gas or electricity is used and consumed if it is supplied to a client other than a taxable dealer. It’s safe to say that this is where the metre is.

If the consumer does not use all of the natural gas or electricity they purchase, they are considered to have used it for VAT purposes.

Our VAT reverse charge – gas, electricity, and gas and electricity certificates Tax and Duty Manual provides more in-depth information (TDM).

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

Self-supply happens when an accountable person diverts goods to their own or exempt use.

Normally, you would have been able to collect the original purchaser’s VAT refund. If this is the case, you must reimburse Revenue for the VAT you received.

As an example, in March 2021 a jeweller takes a watch from stock for their own use.

Discretionary purposes

Including VAT, the price of the watch is €1,230.
At a tax rate of 23%, this amounts to €230.
Normally, the jeweller would be eligible for a VAT refund. The jeweller, on the other hand, now has to account for the VAT on the goods that were diverted to private use.

Self-supply must be reported by the jeweller. A €230 increase in VAT on sales (T1) is all that is needed to complete this process.

VAT on gifts, advertising goods, samples and replacements

The following items are subject to VAT in the situations described on this page:

alternatives for promotional goods samples given as presents.

Gifts

Gifts of business-related goods are subject to VAT. In other words, if their cost to you (without VAT) is €20 or less, they are exempt from VAT.

If the VAT-exclusive cost of the presents is more than €20, you must account for VAT on the total value of the gifts.

Chargeable costs are those that were incurred by you (excluding VAT).

If a gift costs more than €20, no allowance is given for the sums that are not taxable (excluding VAT).

The products involved determine the VAT rate.

Advertising goods and industrial samples

Customers who receive free advertising and industrial samples in acceptable quantities are not taxed. Even if the €20 cap is surpassed, this is still the case.

It is necessary that the promotional products and industrial samples be unavailable to the general public.

Replacement goods

For free replacement goods, warranties or guarantees on the original goods do not apply.

Detailed information on the VAT treatment of gifts and promotional items is provided in additional guidelines.

Special rules for business premises and landowners

Non-established traders and non-established promoters have obligations to property owners while providing goods and services on their premises or land.

Premises or land provided to a non-established trader

Registration with the tax authority is required of anyone who intend to sell goods for less than 28 days.

The following items must be made available to anyone wishing to conduct business on your property:

In addition, the non-established person’s proposed business activities, dates, and locations, as well as their complete name and contact information, should be included.
In the event that VAT is due, you and the company you’re working with could be held responsible for it.

Premises or land provided to a non-established promoter

Non-established promoters may offer cultural, artistic, entertainment, or similar services on your property or facilities. The following information must be provided to Revenue 14 days prior to the event if this is the case:

The promoter’s name and location.

When is a supply of goods not taxable?

In the following situations, VAT liability does not exist:

When commodities are used as collateral to secure the repayment of a debt or a loan.
An example of this would be when a company’s ownership is transferred from one person or entity to another.
Under warranty or guarantee, products are given away for free.
There are gifts that cost less than €20.