A non-established trader is a business which supplies goods or services in Ireland and does not have a fixed place of business in the State.
Business to business
Generally the place of supply for business to business (B2B) services is where the recipient is established. The recipient must register for Value-Added Tax (VAT) and self account for Irish VAT on the reverse charge basis.
There are a number of exceptions to the reverse charge rule where non-established traders must register and account for VAT in the State regardless of the level of their turnover including the following:
- import goods into the State
- supply goods in the State
- engage in distance selling of goods to a person who is not a taxable person in the State
- engage in the supply of services connected with immovable goods located in the State
- engage in the transport of goods or ancillary transport activities for a customer who is not registered for VAT where the transport service begins in the State
- engage in the supply of electronic services from outside the EU to a private individual whose usual place of residence is in the State including:
- website supply, web-hosting, distance maintenance of programmes and equipment
- supply of software and the updating of it
- supply of distance teaching.
Business to consumer
As a non-established trader, if you make business to consumer (B2C) intra-Community distance sales of goods to the State, you must register for VAT in the State if:
- the total value of your intra-Community distance sales of goods and cross-border telecommunications, broadcasting and electronic (TBE) services to customers in all EU Member States, exceeds €10,000 in a calendar year or
- you are established, have a permanent address or usually reside in more than one Member State, in which case the €10,000 threshold does not apply.
Alternatively, you may opt to use the Union scheme – One Stop Shop to declare and pay VAT on intra-Community distance sales of goods.
Own name importation of goods
Where a non-established trader imports goods in his own name that trader must register for VAT in the State.
The trader will have a VAT liability for the onward supply of those goods. VAT borne at importation may be reclaimed by the trader.