Ciarán Ahern (Dublin South West, Labour)
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531. To ask the Minister for Finance if he will consider introducing measures to reduce the cost in VAT and customs duties on tools belonging to skilled tradespeople who are returning from Ireland after a period living abroad; and if he will make a statement on the matter. [46087/25]

John Lahart (Dublin South West, Fianna Fail)
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540. To ask the Minister for Finance if he will provide clarity on the policy regarding the taxation of personal tools brought into the State by skilled tradespeople returning to Ireland after a period abroad; if consideration will be given to exempting such tools, particularly in cases where the tools were originally purchased in Ireland and are clearly the personal property and essential working equipment of the returning worker; and if he will make a statement on the matter. [46159/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 531 and 540 together.

I am advised by Revenue that if the tools are being brought into Ireland from another EU Member State, then no tax is payable on the tools.

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, in the scenario outlined by the Deputy, there are two reliefs in EU law that may allow the import of personal tools 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 sole trader must have ceased activity outside the EU and moved to Ireland to carry on 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’, which is available on the Revenue website www.revenue.ie/en/customs/individuals/customs/c-and-e-1078.pdf, and present it to Revenue. Further information is available on the Revenue website: www.revenue.ie/en/customs/individuals/transfer-business/index.aspx.

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.

• 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.