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)

 

 

 

Article reviewed by the InterTradeIreland Trade Hub Team: July 2025