Bloodstock breeders and trainers will welcome the announcement by the Revenue Commissioners concerning the importation of pure-bred horses into Ireland for breeding and training (PDF, 168KB). The new arrangements mean that a security deposit will no longer be required for placing such horses under the Temporary Admission procedure.
Richard Cowley and David Duffy of our VAT and Customs team explain below.
Brexit introduced significant challenges for the bloodstock industry due to the additional administrative and VAT burden resulting from the movement of horses between Ireland and Great Britain (GB). In recognition of this, steps were taken to ease the associated costs incurred by the industry such as the UK introducing a significant easement in 2022 enabling the Temporary Admission of horses into GB without the need for payment of a deposit or maintenance of a guarantee.
For horses entering Ireland, the Temporary Admission procedure could be used to suspend payment of VAT on import (typically nil customs duties arose) with no deposit or guarantee required but this was limited to horses brought in for sporting events, transhumance or grazing. For bloodstock brought in for breeding or training, payment of a deposit or having a guarantee in place was required.
Breeders and Trainers can now use the H38f declaration in order to import bloodstock under the Temporary Admission procedure without the need for a deposit. For the very limited number of breeders and trainers in possession of a full Temporary authorisation, it is also possible to reduce or eliminate the existing financial guarantee in place to reflect the new arrangements.
It is important to note the waiver of a deposit applies only to imports of pure-bred horses.
A copy of the horse’s passport should be uploaded to AIS when the H38f declaration is lodged. In addition, evidence that a contract/agreement is in place for the breeding or training service should be provided. Given the infrequent use of detailed contracts within the industry Revenue will accept as evidence of an agreement a letter on headed paper which includes the following: identification of the horse (passport number), names and addresses of both parties, location of service, length of time, and signature of both parties.
When filing the H38f declaration it is also important to ensure that the appropriate AIS codes are included in Data Element 2/3 (Breeding Code 1H03 or Training Code 1H04)
If you have any queries in relation to this guidance or wish to discuss the changes further, please do not hesitate to contact Richard Cowley or David Duffy of our VAT and Customs team for further information.
