Acquisitions from other EU Member States

Intra-Community acquisitions (ICAs) of alcohol products

In the case of intra-Community acquisitions of alcohol, Value-Added Tax (VAT) is payable at the same time as the excise duty is payable in the State. The VAT is chargeable on the invoiced price of the goods increased by the amount of the excise duty payable.

What is the duty suspension arrangement?

In general, VAT is not chargeable on the supply of alcohol products while held under a duty suspension arrangement, regardless of the source (imports, European Union (EU) ICAs or home produced).

The supply of alcohol products while held under duty suspension does not constitute a supply for VAT purposes, rather the final supply is subject to VAT. The VAT is payable along with the excise duty, at the time the goods are removed from duty suspension. Any previous supply, EU ICA or importation, should be disregarded.

The VAT due on such final supply will not be chargeable on the VAT invoice issued at the time of supply. It will, instead, be payable with the excise duty by the owner at the time of the removal of the goods from duty suspension.

Where alcohol products are supplied while held under a duty suspension arrangement:

• VAT should not be charged by the supplier.
• VAT should not be shown on any invoice issued in respect of the supply.

Further guidance contains more detailed information on the ICAs of alcohol products.

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