VAT use and enjoyment provisions

The use and enjoyment rules ensure that certain services are taxed where the service is used and enjoyed. 

The rules prevent double taxation, non-taxation or distortions of competition. 

These rules apply to the following services only: 

• hiring of movable goods
• hiring out of means of transport
• telecommunications services
• financial services. 

From 1 July 2021, all businesses supplying these services cross-border to consumers (B2C) in the European Union (EU) may fulfil their Value-Added Tax (VAT) registration obligations using the VAT One Stop Shop scheme (OSS). 

Hiring of movable goods

The place of supply of the hiring of movable goods is deemed to be the State where:

• the place of supply would be outside the EU under the general rules
• and
• the service is used and enjoyed in the State. 

Hiring out of means of transport

The place of supply of the hiring out of a means of transport is deemed to be outside the EU where:

• the place of supply would be the State under the general rules
• and
• the service is used and enjoyed outside the EU.

Telecommunications services

There are two use and enjoyment rules for telecommunication services.

Telecommunication services, radio and television broadcasting services and telephone cards

The place of supply of these services or cards to consumers is deemed to be the State where:

• the place of supply would be outside the EU under the general rules
• and
• the services or card are used and enjoyed in the State.

Telecommunications and phone cards

The place of supply of telecommunications services or cards by an Irish established business to a consumer is deemed to be the State where:

• the place of supply would be outside the EU under the general rules
• and
• the service or card is used and enjoyed in the State.

Financial services

Financial services include banking, insurance, reinsurance and financial fund management but exclude the provision of safe deposit facilities. 

The place of supply of financial services to consumers is deemed to be the State where:

• the place of supply would be outside the EU under the general rules
• and
• the services are used and enjoyed in the State.

Money transfer services

The place of supply of money transfer intermediary services supplied to a principal established outside the EU is deemed to be the State where:

• the money transfer services are provided to a person in the State
• and
• are in effect used and enjoyed in the State.