Meaning of supply of goods

A supply of goods means:

(a) The transfer ownership of goods by agreement.

(b) The handing over of goods under a hire purchase type agreement.

(c) The handing over of land or buildings developed on behalf of another person.

(d) The compulsory acquisition of goods by or on behalf of the State.

(e) The application (self-supply) of goods from a taxable to an exempted activity.

(f) The appropriation (self-supply) of goods to non-business use.

(g) The transfer of goods from an ROI business to its branch in another EU State.

A supply of goods does not include:

(i) A transfer ownership of goods to a lender as security for a loan.

(ii) A transfer ownership of goods back to the borrower on redemption of the loan.

(iii) 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:

(a) An Intra-Community Supply (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 Intra-Community Supply of a means of transport takes place where the goods’ journey ends (s 24(1)).

(b) The place of supply of goods that are assembled or installed is where the goods are assembled or installed (s 29(1)(b)).

(c) 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)).

(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)).