Intra-Community supplies (ICS)

Zero rate of VAT on ICS of goods

The place of an intra-Community supply (ICS) of goods is the place where the transport begins.

The zero rate of Value-Added Tax (VAT) can apply to the ICS if the following conditions are met:

• the customer is registered for VAT in another Member State
• you obtain and retain the customer's VAT registration number (including country prefix)
• you quote your VAT number and your customer’s VAT number on the sales invoice
• the goods are dispatched or transported to another Member State
• and
• correct VIES Returns are made by the supplier.

If any of the above five conditions are not satisfied, you must charge Irish VAT to your customer at the appropriate rate for the goods.

If the requirement to submit a correct VIES return is not met, the zero rate cannot apply to the supply of the goods.

Revenue may not be satisfied that the goods have been sold and delivered to a VAT registered person in another Member State. In such cases, the supplier will become liable and must charge Irish VAT.

However, if the conditions for zero-rating are subsequently established then:

• the customer is entitled to recover the VAT he or she has paid
• and
• the supplier can then make an adjustment in their VAT return for the period.

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