Cathy Bennett (Cavan-Monaghan, Sinn Fein)
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168. To ask the Minister for Finance the applicable VAT rate for tools related to the construction sector for those moving to the state; if he has considered revising such in order to encourage and facilitate the return of members of the diaspora; and if he will make a statement on the matter. [67553/25]

Johnny Guirke (Meath West, Sinn Fein)
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175. To ask the Minister for Finance if he will consider scrapping the VAT and customs duties imposed on tools belonging to skilled trades people who are returning to Ireland from non-EU countries; and if he will make a statement on the matter. [67977/25]

Simon Harris (Wicklow, Fine Gael)
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I propose to take Questions Nos. 168 and 175 together.

If 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, 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 tradesperson 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’(C-and-E-1078.pdf) form and present it to Revenue.

There is also another relief called Returned Goods Relief (RGR) which provides relief from Customs Duty and VAT when goods are re-imported within a 3-year period 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.

Please see attached link for further information on RGR - www.revenue.ie/en/customs/businesses/relief-duty-vat/reimported-into-eu/index.aspx.

Any further queries can be sent to customsreliefs@revenue.ie.