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Ireland: VAT treatment of services in connection with immovable property

Ireland: VAT treatment of services, immovable property

Guidance—Irish Revenue eBrief No. 142/18—addresses the value added tax (VAT) treatment of services connected with immovable property (e.g., land and buildings).


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The guidance (and examples provided) address the VAT treatment of various services including estate agency services, holiday and similar accommodation, construction and similar services, and legal services in connection with immovable property.

Services connected with immovable property are subject to VAT in the jurisdiction where the relevant property is located. This is a departure from the normal VAT “place of supply” rules which deem a service to be subject to VAT in either the supplier’s or the customer’s country of establishment depending on whether it is a supply to another business or to a consumer. However, in order for a service to fall within the specific rule for immovable property, the service must have a direct connection with a specific property as opposed to an indirect connection. The criteria for a direct connection between the service and a specific property include:

  • The service must be derived from immovable property.
  • The property makes up a constituent element of the service and is central to, and essential for, the services supplied.
  • If the services are provided to, or directed towards, an immovable property, they have as their object the legal or physical alteration of that property. 

There is also guidance on the Irish VAT rate that is applicable to various types of services in connection with the property as well as further information about which party is liable to account for the VAT. 


Read an August 2018 report prepared by the KPMG member firm in Ireland

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