Revenue eBrief No. 066/21
The VAT Treatment of the procurement of certain Goods and Services by a Public Body
The Tax and Duty Manual on The VAT Treatment of the procurement of certain Goods and Services by a Public Body has been updated regarding the implications arising from the requirement to apply the reverse charge mechanism to received construction services.
This guidance sets out the circumstances in which a public body, which is not otherwise a taxable person in relation to its activities, may engage in the procurement of certain goods or services in respect of which they will be required to register and account for VAT.
‘Public body’ is a broad ranging term, which includes Government Departments, An Garda Síochána, the Defence Forces, local authorities including regional authorities and harbour authorities, the Health Services Executive, State sponsored bodies, public hospitals, enterprise boards and educational establishments, such as, Universities, Institutes of Technology, Education and Training Boards and schools.
- VAT registration solely for the purpose of reverse charge construction services
Where a public body is required to register for VAT by virtue, solely, of the fact that it is required to account for VAT on received construction services, that public body will not be considered to be a VAT registered person for any other purpose. A public body in those circumstances will not, for example, be required to account for VAT in respect of intra-Community acquisitions unless they breach the relevant registration threshold or are otherwise obliged to register for VAT.