Temporary/Cross-Border Provision of Services
General information on temporary/cross border services
The following general information is provided for service providers intending to provide temporary/cross border services in Ireland.
One of the objectives of the Services Directive is to make it easier for a service provider to provide services to a Member State without being established there. “Establishing” in a Member State, in effect, means having a permanent office or place of business there.
Article 16 of the Directive states that ‘Member States shall respect the right of providers to provide services in a Member State other than in which they are established’.
Under the Directive Member States may not impose requirements on such providers that are discriminatory, unnecessary or disproportionate e.g. a request for the authorisation of the service provider. They can, however, impose requirements on providers based in other Member States in certain circumstances. That means that Ireland can impose rules on service providers who provide services here where the rules are justified on the grounds of public policy, public security, public health or the protection of the environment.
It should be noted that the right to provide services under Article 16 of the Directive does not apply to a large number of services that are set out in Article 17 of the Directive.
The provisions of Article 16 and 17 of the Directive are set out in Part 2 of the European Union (Provision of Services) Regulations 2010 (S.I. No. 533 of 2010).
Taxation
The following general information on taxation is provided for services providers not established in Ireland, but intending to provide temporary/cross border services in Ireland.
Taxation is excluded from the scope of the Services Directive. Service providers should, accordingly, contact the relevant competent authority, the Office of the Revenue Commissioners, to clarify the position on the tax implications for providing services in Ireland.
Service providers should supply the exact details of the business, and specifics of the intended work to be done in Ireland to the Office of the Revenue Commissioners.
Generally speaking, if a service provider is not resident in Ireland for more than 183 days they will not have to register for income tax. If resident for more than183 days then they will have to register for income using form TR1.
If a service provider is a self employed individual and is required to register for tax, a PPS number will also be required from the Department of Social Protection
More information on obtaining a PPS number can be found in the link below on the Department of Social Protection’s website
Information on obtaining a PPS number.
If a service provider intends employing persons in the State they must register for PREM/PAYE, and if they are a company with a permanent establishment they must register for Corporation Tax using form TR2.
Businesses with a base outside Ireland should contact the Office of the Revenue Commissioners at the following email address:who will advise service providers accordingly.
As regards VAT, generally speaking if a service provider is not established in Ireland s/he is liable for VAT in Ireland. There are exceptions to this depending on the service being provided. They are detailed in the link below
http://www.revenue.ie/en/tax/vat/leaflets/place-of-supply-of-services.html.
