Supply of goods

Meaning of supply of goods

A supply of goods means (s 19):

  • The transfer ownership of goods by agreement.
  • The handing over goods under a hire purchase type agreement.
  • The handing over land or buildings developed on behalf of another person.
  • The compulsory acquisition of goods by or on behalf of the State.
  • The application (self-supply) of goods from a taxable to an exempted activity.
  • The appropriation (self-supply) of goods to non-business use.
  • The transfer of goods from an ROI business to its branch in another EU State.

A supply of goods does not include (s 20):

  • A transfer of ownership of goods to a lender as security for a loan.
  • A transfer of ownership of goods back to the borrower on redemption of the loan.
  • A transfer in connection with the transfer of a business or part of a business to another taxable person.

Place of supply of goods

The general rule is that a supply of goods takes place where the goods are located at the time of the supply (s 29(1)(c)).

The exceptions to the general rule are:

  • An Intra-Community Supply (ICS) (other than a means of transport) – the place of supply is where the goods’ journey ends. But if the customer is VAT-registered the supply is deemed to take place in the EU State that issued the customer’s VAT number.
  • An ICS of a means of transport takes place where the goods’ journey ends (s 24(1)).
  • The place of supply of goods that are assembled or installed is where the goods are assembled or installed (s 29(1)(b)).
  • For goods supplied on board a boat, plane or train travelling between EU States, the place of supply is the EU State of departure (s 29(1)(d)).
  • For distance sellers without an EU establishment, selling into an EU State, the place of supply is where the goods’ journey ends (s 30(1)-(2)).