VAT Implications for Trade between republic of Ireland and the UK

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Distance sales of goods

Distance Sales of Republic of Ireland to UK (B2C sale of goods)

Brexit has triggered changes post 1 Jan 2021.

Irish companies who used to charge Irish VAT on B2C supplies of goods to UK Customers should not charge Irish VAT on these supplies. 

Currently the distance sales threshold for VAT registration for B2C sellers of goods from Ireland into the UK is £70,000.  The threshold will no longer apply from 1 January 2021. 

Under new rules, Irish sellers will be liable to charge UK VAT on goods shipped from Ireland to consumers in GB in consignments of £135 or less.  For consignments greater than £135, import VAT and potentially customs duty will be due.

Distance Sales of UK Companies to Irish Customers (B2C sales of goods)

For the distance selling of goods B2C from the UK to the Republic of Ireland, those businesses will continue to have an obligation to register and pay Irish VAT on their supplies to Irish customers. Those companies will also need to complete the necessary import declaration in respect of goods imported into Ireland.

B2C Services – Republic of Ireland

In general services supplied from Ireland to non-business customers outside the EU (Now UK also) will not be subject to Irish VAT.

Subject to the Use and Enjoyment provisions, VAT is not due on the following services supplied to non-business customers established outside the EU:

  1. Transfers and assignments of copyrights, patents, licenses, trademarks, and similar rights.
  2. Advertising services.
  3. The services of consultants, engineers, consultancy firms, lawyers, accountants, and other similar services, as well as data processing and the provision of information.
  4. Obligations to refrain from pursuing or exercising, in whole or in part, business activity or a right.
  5. Banking, financial, and insurance transactions including reinsurance, except for the hire of safes.
  6. The supply of staff.
  7. The hiring out of the movable tangible property, with the exception of all means of transport.
  8. The provision of access to, and of transport or transmission through, natural gas and electricity distribution systems. This includes the provision of other services directly linked thereto.
  9. Telecommunications services.
  10. Radio and television broadcasting services.
  11. Electronically supplied services.

Services not included in the list above, supplied to a non-business customer outside the EU are subject to Irish VAT at the appropriate rate.

Movement of goods from the EU to Ireland through the UK

Revenue has outlined scenarios relating to:

  • goods that pass through the UK on their way to Ireland and their treatment on arrival in Ireland under the Union Customs Code and the EU-UK Trade and Cooperation Agreement.

For more information how TAS can help in compliance on VAT matters or consultancy contact us at

00353 1 442 8230 or email us at moh@tasconsulting.ie 

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