Value Added Tax Consolidation Act 2010 section 25

Meaning of supply of services

Section 25 defines what constitutes a "supply of services" for VAT purposes, establishing that any commercial activity which is not a supply of goods is treated as a supply of services.

• A supply of services means the performance or omission of any act, or the toleration of any situation, provided it does not fall within the definition of a supply of goods.
• The definition is deliberately broad, capturing virtually all business activities that are not goods-related, including hiring, repairing, licensing, advertising, transport, entertainment and refraining from an activity.
• Certain transactions are excluded: transfers of goods given as security for a loan, and transfers of goods forming part of the transfer of a business to another taxable person.
• A related rule in section 41 (the "two-thirds rule") may re-classify what appears to be a supply of services as a supply of goods where the VAT-exclusive cost of goods to the supplier exceeds two-thirds of the VAT-exclusive price charged to the customer.