Imports and Arrivals VAT applies automatically on importation from outside the EU. It is not based on the concept of a supply. Intra Community acquisitions take place when the goods arrive within the territory of the State. VAT is charged on the 15th day of the month following or the date in which the invoice issues, if earlier. In the case of new means of […]
Supply of Goods or Services VAT legislation makes the supplier liable to charge, collect, report and pay VAT. The supplier is usually the seller. However in many cases, in particular the international supply of goods and services, it is the recipient who is deemed the supplier. This is called a reverse charge. VAT is chargeable when the supply takes place in the state. This can […]
Application of VAT VAT applies to the sale of goods and provision of services ( both called a ‘supply’) by VAT registered businesses in the state. The supply must be in return for some payment or value (consideration). VAT is charged on the price which the supplier becomes entitled to receive. This includes taxes, commissions and costs. Where the price is not monetary, the open […]
Supply of Goods VAT applies to the supply for monies or other value of goods or services by accountable persons within the State. The supple usually takes place when the ownership passes. Taxable persons cover almost anyone in business. Accountable persons arethose who are or should be registered from VAT. A distinction is made between the import of goods from outside the European Union and […]
Services VAT applies to the supply of services by a taxable person in the furtherance of business in the State. Services are very broadly defined. They cover the performance or omission of any act and even the toleration of a situation, not being a sale of goods. A one off transaction which may not appear to be a service in the conventional sense may be […]
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 […]
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. […]