Skip to content
  • There are no suggestions because the search field is empty.

VAT for technical and financial services

This article looks at VAT rules for the Business to Consumer provision of services of a professional, technical, financial, intellectual or other intangible nature.

a close up of businessman hand working on laptop computer with financial business graph

 

Introduction

Generally:

  • B2C (Business to Consumer) services are subject to VAT in the country where the supplier is located.
  • B2B (Business to Business) services follow the general B2B rule: VAT is payable where the customer is located.

However, there are exceptions. One such exception relates to B2C services of a professional, technical, financial, intellectual or intangible nature. This article outlines how the VAT rules apply in these cases, particularly for businesses in Ireland and Northern Ireland.

Note: Northern Ireland does not follow EU VAT rules for services.

What services are included?

These rules apply to services with a high degree of intellectual or advisory character, including:

  • Advertising services
  • Services of consultants, engineers, lawyers, accountants, etc.

    o Note: If these services relate directly to land, different VAT rules apply. Further guidance       should be sought.
  • Banking, financial, and insurance services
  • Supply of staff
  • Hire of goods (excluding means of transport)
  • Transfers and assignments of:

o Copyright

o Patents

o Licences

o Trademarks

o Similar intellectual property rights

VAT Treatment Rules

Suppliers Based in Ireland

If your business is based in Ireland and supplies services of this nature to a non EU private customer (B2C):

  • The place of supply is outside the EU
  • Generally, No Irish VAT is chargeable

Example:

An Irish accountant provides services to a private customer in Northern Ireland.

  • No Irish VAT is charged
  • The Irish accountant must register for UK VAT and charge 20% UK VAT
  • The UK has a nil VAT threshold for non – established traders.

Suppliers Based in Northern Ireland (or UK)

If your business is based in Northern Ireland and supplies services to a non-UK private customer (B2C)

  • The place of supply is where the customer belongs
  • The services are outside the scope of UK VAT

Example:

An Northern Ireland accountant providing services to a private customer in Ireland

  • No UK VAT is charged
  • Further guidance is needed to determine whether Irish VAT registration is required

Special Cases: B2B and NI/Ireland Cross-Border Transactions

  • NI to Ireland (B2B): Supply of these services fall outside scope of Irish/EU VAT
  • Ireland to NI (B2C): Supply of these services fall outside scope of UK VAT

The business customer will likely account for the VAT on a reverse charge basis.

Reverse Charge B2B Example

An Irish Accountant provides services to a VAT registered NI business.

  • No VAT charged by Irish supplier
  • NI business accounts for 20% UK VAT under reverse charge
  • If fully deductible, this is a cash neutral transaction (VAT in and out on same return)

Further information

GOV.UK Place of supply of services (VAT Notice 741A):  B2C services of a professional, technical, financial, intellectual or other intangible nature supplied to customers outside the UK.

Revenue.ie: Supplies of services to non-business customers outside the EU (B2C)

 

 

Do you need further help or advice?

 

Article reviewed by the InterTradeIreland Trade Hub Team: July 2025