Value Added Tax Consolidation Act 2010 section 35A

Place of supply for certain taxable persons making supplies of intra-Community distance sales of goods and supplies of telecommunication services, radio or television broadcasting services or electronically supplied services

Section 35A provides a €10,000 annual threshold below which Irish-established suppliers making intra-Community distance sales of goods and supplies of telecommunications, broadcasting or electronically supplied (TBE) services to other EU Member States may account for VAT domestically in Ireland rather than in each customer's Member State.

• Where a supplier is established only in Ireland and the combined value of intra-Community distance sales of goods and TBE services to other Member States does not exceed €10,000 (exclusive of VAT) in the current or previous calendar year, the normal domestic place of supply rules apply, so that VAT is accounted for in Ireland.
• If the €10,000 threshold is exceeded during a calendar year, the general place of supply rules (which locate the supply in the customer's Member State) apply from the date the threshold is breached, requiring the supplier either to register for VAT in each destination Member State or to register for the Union Scheme.
• A supplier who has not exceeded the threshold may opt to apply the general place of supply rules voluntarily, but once exercised the option is binding for a minimum of two calendar years.
• The threshold test aggregates the value of both intra-Community distance sales of goods and TBE services together across all destination Member States, and must be satisfied for both the current and the preceding calendar year.