Dáil Éireann Debate, Tuesday - 10 February 2026
410. Deputy Ken O'Flynn asked the Tánaiste and Minister for Finance the number of applications received and approved under (a) Transfer of Business relief and (b) Returned Goods Relief in respect of construction tools brought into the State by returning Irish citizens in each of the past five years; the number refused in each case; and the principal grounds for refusal. [10001/26]
View answer411. Deputy Ken O'Flynn asked the Tánaiste and Minister for Finance if he will outline the position in respect of Irish citizens returning to live and work in the State as employees in the construction sector who bring personally owned tools with them from non-EU countries; and if he accepts that such individuals are excluded from Transfer of Business relief under current rules. [10002/26]
View answer412. Deputy Ken O'Flynn asked the Tánaiste and Minister for Finance whether his Department has undertaken any assessment of the impact of Customs Duty and VAT charges on construction tools on the return of skilled Irish tradespeople from outside the EU, in light of acknowledged labour shortages in the construction sector; and if he will make a statement on the matter. [10003/26]
View answer413. Deputy Ken O'Flynn asked the Tánaiste and Minister for Finance the average processing time for applications under Transfer of Business relief involving tools of the trade; the documentation most commonly outstanding or queried by Revenue; and whether any guidance has been issued to streamline applications for returning Irish citizens. [10004/26]
View answer414. Deputy Ken O'Flynn asked the Tánaiste and Minister for Finance if consideration has been given to extending relief from Customs Duty and VAT on tools of the trade to returning Irish citizens employed in the construction sector who do not meet the sole-trader criteria for Transfer of Business relief; and if not, the reason for this position. [10005/26]
View answerI propose to take Questions Nos. 410, 411, 412, 413 and 414 together.
I will take questions 10001, 10002, 10003, 10004 and 10005 together.
I am informed by Revenue that there is no tax payable on tools, if the tools are being brought into Ireland from another EU Member State.
If the tools are being imported into the state from a non-EU country, then Customs Duty and VAT may be chargeable on the tools. However, there are two reliefs in EU law that may allow the import of tools by an individual into the EU/Ireland without Customs Duty or VAT being charged on them.
There is a relief from Customs Duty and VAT associated with ‘Transfer of Business’ relief which, in certain circumstances, can apply to tools of the trade. To qualify for this relief, a tradesperson must have ceased activity outside the EU and moved to Ireland to carry out a similar activity here. A new sole trader activity must be set up in Ireland. Proofs of registration both outside the EU and on return to Ireland will be required to avail of the relief.
If ‘Transfer of Business’ relief is applicable, the individual must complete a ‘Transfer of Business Activities’ (www.revenue.ie/en/customs/individuals/customs/c-and-e-1078.pdf) form and present it to Revenue.
Proof of the transfer of business activities to the European Union (EU) is required, as follows:
• Proof from the Revenue Authorities in the non-EU country where the business was established, confirming that the person / business has ceased trading there.
• Proof of details of sole trader commencement in Ireland.
• Provide evidence that the goods in question have been used in the business for a period of at least 12 months e.g. sales invoices, receipts of purchase.
Irish citizens returning to live and work in the State as employees in the construction sector who bring personally owned tools with them from non-EU countries don’t qualify under Transfer of Business rules as proof is required that a business has ceased outside the EU and a new business has been set up in Ireland.
There is also another relief called Returned Goods Relief (RGR) which provides relief from Customs Duty and VAT when goods are re-imported into an EU Member State from a non-EU country. This relief is applicable where the tools being returned to Ireland have been exported from Ireland in the first place by the tradesperson. The following proofs are required to be eligible to claim RGR on personal tools:
• Proof that the tools were exported from Ireland in the first instance i.e. an export declaration.
• Proof that the export from Ireland and re-importation into Ireland is happening within a 3 year period.
• Proof that the person bringing the tools back into Ireland is the same person who brought them out of Ireland is required to claim relief from VAT.
• Proof that the tools are being returned in the same state that they were originally in when brought out of the EU, i.e. the goods are unaltered.
‘Transfer of Residence’ Relief can, in certain circumstances, apply to tools, but only if they are intended for personal, non-commercial use.
These reliefs are available under EU legislation called the Union Customs Code (UCC) which defines the legal framework for customs rules and procedures in the EU customs territory. As Customs is an EU competence and applies in all Member States, it is not possible for me, as Minister for Finance, to change these reliefs or implement any further measures that are not provided for in the UCC.
Statistical information on claims for these reliefs in relation to tools is not collected, so Revenue are unable to provide the numbers of claims received, the numbers of claims approved or of the number of claims rejected.
Claims in relation to either relief are processed promptly. However, delays can occur where the documentation provided is insufficient. In these cases, the time taken to approve the applications will depend on how quickly the additional documentation is provided to Revenue. The documentation most commonly outstanding or queried by Revenue varies depending on the type of relief. In relation to Returned Goods Relief, there can be issues with the correct proofs being supplied by the applicant to show that the tools were originally exported from the EU and that they were returned to the EU in an unaltered state within three years. In relation to Transfer of Residence, issues can arise in relation to proving residence abroad and the ownership and use of the imported tools while abroad. To assist citizens, detailed information in relation to both reliefs and the documentation required is available on the Revenue website at www.revenue.ie.
I can also confirm that the Department of Finance has not undertaken any assessment of the impact of Customs Duty and VAT charges on construction tools on the return of skilled Irish tradespeople from outside the EU.
