Irish Revenue has published eBrief No. 142/18, announcing the creation of a new Tax and Duty Manual on Services connected with immovable property. The guidance sets out the place of supply rules for services connected with immovable property in accordance with Council Implementing Regulation 282/2011/EU (as amended) and details when a service is considered connected with immovable property, along with several examples.
In general, if the supply of services is connected with immovable property or is the grant of a right to use the property, the place of supply is where the property is located. This rule applies regardless of whether the service is supplied to a business customer (B2B) or to a final consumer (B2C). Services are considered connected with immovable property in two main cases:
If the place of supply is in Ireland, the standard VAT rate (23%) generally applies for professional services, the reduced VAT rate (13.5%) applies for services consisting of the development of immovable goods, subject to the two-thirds rule, and the second reduced VAT rate (9%) applies for hotel accommodation and other accommodation.
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