At a recent TALC meeting with Revenue, the Institute sought clarification of the VAT treatment when a UK business with an Irish VAT registration is exporting the goods from GB to Ireland on Delivered Duty Paid (DDP) terms and selling to an Irish registered end-user. Revenue confirmed that there were two separate transactions for VAT: Firstly, import Irish VAT and secondly domestic Irish VAT.

When the goods arrive in Ireland from GB, the UK business will use its Irish VAT number in order to pay over the import VAT to get the goods into Ireland (unless they have availed of postponed accounting for import VAT).

When the business is supplying the goods to the VAT registered end user in Ireland, the business will charge Irish VAT at the appropriate rate and normal invoicing rules apply. The place of supply is Ireland as the goods are located in Ireland when the transfer of ownership of the goods takes place for VAT purposes.