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