Value Added Tax Consolidation Act 2010 section 42

Taxable amount for certain supplies

Section 42 sets out the rules for determining the taxable amount (the amount on which VAT is charged) for self-supplies of goods and services, cross-border business transfers, reverse-charge services, hire-purchase transactions, and excisable goods.

• The taxable amount for a self-supply of goods is the VAT-exclusive cost to the supplier; for a self-supply of services diverted to non-deductible business use, it is the open market price; and for a self-supply of immovable goods, the cost includes the amount on which VAT was last charged on a supply of those goods to the supplier.
• Where goods are transferred from an Irish business to its branch in another EU Member State, the taxable amount is the cost of the goods to the supplier (or the cost of similar goods in the State if there is no cost); for an equivalent transfer into Ireland from another Member State, it is the cost to the supplier in that Member State (or the cost of similar goods there).
• For services received from abroad where the Irish recipient is liable under the reverse charge, the taxable amount is the actual consideration paid for the services; for hire-purchase supplies made directly by a trader without a finance house, the taxable amount is the higher of the open market price or the total consideration receivable by the supplier.
• Where excisable goods (other than alcohol products) are supplied from a bonded warehouse to an unregistered person before excise duty is paid, the taxable amount is increased by a notional amount equal to the excise duty that would be payable at that time.