Irish Revenue updated its Tax and Duty Manual on the VAT treatment of hiring or leasing means of transport on 16 October 2026, introducing guidance on goods and services supplied alongside transport hire.
Irish Revenue published eBrief No. 152/26 on 16 October 2026, announcing an update to its Tax and Duty Manual on the VAT treatment of the hiring or leasing of means of transport. The revision added a new paragraph 7 addressing the VAT treatment of goods and services supplied with transport hire.
The manual explains the VAT rules for determining the place of supply based on the hire period and the customer’s tax status. Short-term hiring generally covers periods of up to 30 days, or 90 days for vessels, while long-term hiring exceeds these limits. Different places of supply rules apply to business and non-business customers.
The standard VAT rate generally applies to transport hire in Ireland, while zero and reduced rates are available for specified categories and circumstances. Charges for services and accessories supplied under the main hire contract generally follow the VAT rate applicable to the hire, while fuel charges are subject to the standard rate. Separately supplied insurance may be exempt from VAT, and separately invoiced repair services are subject to the reduced rate of 13.5%, subject to the two-thirds rule.
The manual also confirms that lessors may recover input VAT on eligible business expenses related to hiring activities, including qualifying transactions where the place of supply is outside Ireland.
The updated Tax and Duty Manual provides further guidance on applying VAT rules to transport hire and related supplies.
