Taxable Business A taxable person is one who otherwise than as an employee of another engages in the supply within the State of taxable goods or services in the course of furtherance of the business. A business is very widely defined. It is an economic activity, whatever the purpose or result of that activity. It includes any activity of producers, traders or persons supplying services […]
EU Rate Limits EU law sets the parameters within which states may charge VAT. The lowest standard rate permissible is 15%. The Republic of Ireland rate is at the higher end, at 23%., The standard UK rate was 17.5% for a number of years. It was increased to 20%. The standard rate in Ireland is 23%. It had been 21% for many years and was […]
Zero rated supplies and VAT recovery Unlike the case with exempt supplies VAT recovery is allowed for zero-rated supplies. The recovery is allowed on inputs (purchases), notwithstanding that no VAT is in fact chargeable on sales. Exemption from VAT differs in that no VAT is chargeable and the supplies do not trigger registration. The general rule is that where supplies are exempt, there can be […]
VAT deduction/recovery. A key feature of value added tax, is that it is charged on the ultimate consumer or user. Generally, while goods and services are in the chain of supply, prior to their ultimate provision to the consumer/end-user, VAT suffered may be recovered. Each supplier is liable for VAT, in effect, on its net value added. A VAT registered trader must charge VAT on […]
Collecting VAT The obligation to charge VAT and account for it to the Revenue, arises in the period in which the supply is made. This is the chargeable event. Unless the trader qualifies for and has been permitted to use cash accounting it may arise before the payment is made. Imported VAT is paid on the full price to the border including transport and insurance […]
General Obligations Every accountable person for VAT is obliged to keep full records of all transactions, relating to their VAT liability and deductibility. Records may be kept in electronic form and in other media acceptable to the Revenue Commissioners. Where electronic media are used, each transaction must have a specific number, date and time of entry. The records must show price received discounts reductions and […]
Periodic Returns Formerly, VAT was returned with a manual paper return. It is now paid through Revenue Online Service in almost all cases. Unless the trader elects and is permitted to account for VAT on a cash received basis VAT will frequently due before payment is received. If payment is not ultimately received VAT credit may be granted by way of bad debt relief. A […]
Invoice Issue A supplier must issue a VAT invoice to another vatable person, a State Authority, a person carrying out an exempted activity, persons trading in another state, persons who have to self-account in another state, persons buying in another state under distant selling arrangements. Persons entitled to reclaim VAT, who are not obliged to be registered for VAT but qualify for certain legislative concessions […]
Exemption from VAT If an activity is VAT exempt, there is no entitlement to register. Equally, there is no obligation to charge VAT. The status may not be as advantageous as first appears, as there is no entitlement to recover VAT. This can sometimes be unexpectedly costly, particularly in respect of property acquisitions. Some exempt supplies when provided to persons abroad, qualify for VAT reclaim. […]
Farmers VAT legislation provides special treatment of agriculture and fishery. A farmer as defined, can elect to be accountable for VAT or may elect exclude his farming activities from the turnover thresholds and the obligations to register. A farmer may claim the “flat rate addition”, even if he is not accountable for VAT. A farmer is any person who is engaged in at least in […]
The Schemes In most cases goods sold by traders are newly manufactured or made. Where second-hand goods are sold back to businesses by non-VAT registered persons (usually private persons) special provisions apply to reflect the fact businesses are not able to recover VAT on those purchases. Where the margin scheme applies VAT applies to the difference between the purchase and sale price i.e. the margin. […]
Place of Supply The place of supply determines where VAT is charged. The EU VAT directive set principles for determining the place of supply. The United Kingdom operates a system which is still very much influenced by the EU directives. In the case of business to business cross-border services, the place of supply is generally where the business which receives the service is established. This […]
Documents Deemed Stampable A range of documents are deemed to be stampable conveyances, notwithstanding that they are not a conveyance on sales. Legislation has applied form many years to certain agreements for the sale of an interest in these categories of property; Otherwise stamp duty could be avoided by use of an agreement for sale, only without a transfer (conveyance). The deeming provision charge stamp […]
Long Leases Low Rent Leases are categorised separately for stamp duty purposes. They are not conveyances on sale, but are subject to separate, but similar provisions. The stamp duty provision vary with reference to the category of lease. The lease head of charge applies to the creation of a lease. The assignment of a lease is a conveyance on sale. Lease premiums are stampable on […]
Exemptions Many activities in the financial services sector, particularly those based in Ireland but focused internationally, are exempted from stamp duty. Stamp duty is chargeable on of the following instruments: a debt factoring agreement; a swap agreement; a forward agreement; a financial futures agreement; an option agreement; a combination of any 2 or more of the instruments specified above a transfer of, or an agreement to […]
A Derelict Site A derelict site is any land which detracts or is likely to detract to a material degree from the amenity, character or appearance of land in the neighbourhood because of the existence on land of structures which are ruined or derelict or dangerous; the neglected, unsightly or objectionable condition of land or of any structures on the land; the presence, deposit or […]
General The Urban Regeneration and Housing Act 2015 provides for the vacant site levy. The land to which the levy provisions may apply shall be either “residential land” or “regeneration land”. It applies to land in both public and private ownership. Residential land means land included by a planning authority in its development plan or local area plan with the objective of zoning for use solely or primarily for […]