Independent TD Carol Nolan has called for returning tradespeople to be exempted from paying Customs Duty and VAT on their tools, as the Government continues to encourage them to return to Ireland and ‘Build Back Home’.
The Government has spent almost €500,000 on its ‘Build Back Home’ campaign since 2024, which encourages Irish construction workers overseas to return home.
The webpage for the campaign states:
“Ireland needs people with construction skills and experience to help deliver on ambitious targets for new housing and infrastructure.
“Construction workers are in demand, and there are lots of opportunities for Irish construction workers who have moved abroad and are considering returning.
“Between now and 2030, we need nearly 70,000 new entrants to fill a variety of construction-related roles – from bricklayers to plumbers, architects to project managers.”
However, tradespeople considering returning to Ireland face steep Customs Duty and VAT charges on their tools, which according to Revenue there is no tax relief for except in certain, limited circumstances.
Commenting on the challenges faced by construction workers who consider the Government’s invitation to return to Ireland, Offaly TD Carol Nolan said that “returning home for our tradespeople should be a process that encounters as few obstacles as possible”.
“Unfortunately, dealing with the threat of unquantifiable VAT payments is a headache and its something they could absolutely do without.
“A new system of exemptions should be introduced and replaced with a simple customs declaration,” she said, adding that “this is very low hanging fruit in terms of policy adjustments and it should be implemented immediately”.
While ‘Transfer of Business’ relief and ‘Returned Goods Relief’ may apply to tools of a trade in limited circumstances, it remains the case that when relocating from outside the EU to an EU member state, including Ireland, Customs Duty and VAT charges mostly apply to tools of a trade without exception.
Many tools attract zero percent Customs Duty, but some specialised equipment can attract a lower duty of anywhere between one and four percent.
However, the standard rate of VAT (23 percent) applies to tools brought into the country, meaning that a returning tradesperson in possession of tools for work could face charges ranging from anywhere between hundreds of euros to thousands of euros.