Our firm specialises in the area of VAT consultancy. We have wide-ranging experience of dealings with both domestic VAT issues and the international aspects of VAT on goods and services.

VAT is a consumption tax assessed on the value added to a product or service. It is an EU-wide tax, being operated with only minor variations by all countries within the EU. Knowledge of how VAT operates on transactions in other member states and outside of the EU is of growing importance to businesses in an increasingly global market place.

It applies to most goods and services that are bought or sold in the EU. Goods and services that are exported are normally not subject to VAT. However to keep the system fair for EU producers, VAT normally applies to the importation of goods and services.

The taxable person is obliged to charge and account for VAT on a periodic basis, normally bi-monthly, to the revenue commissioners. They can deduct VAT suffered on purchase of goods and services which have been used to make their own taxable supplies. VAT is charged at different rates depending on the type of business you are running, where the supply is made and whether the buyer of the good or service is a private individual or another business.

The current rates of vat and vat registration thresholds in Ireland are as follows:

You do not have to pay any VAT on financial, medical or educational services. You may also not pay VAT for live theatrical and musical performances (except those where food or drink is served during all or part of the performance).

If a business person supplies taxable goods or services, including zero-rated ones, they can claim VAT back from the government on their taxable business purchases. However, if someone only supplies exempt goods or services, they cannot reclaim VAT.

You can get an extensive list of VAT ratings in Ireland from the Revenue Commissioners if you follow the link below:

http://www.revenue.ie/en/tax/vat/rates/index.jsp

REGISTRATION

Registration is obligatory if turnover exceeds the following limits:

Also certain foreign traders supplying taxable services in Ireland or selling goods from stocks held in Ireland must register for Irish VAT regardless of the volume of sales.

There are also specific rules for distance sales to Ireland and for premises providers who allow non-established vendors to operate from their premises.

VAT ON PROPERTY

One of the most complicated areas in VAT legislation, and Irish tax legislation as a whole, is the operation of VAT on property transactions. We can advise you on the VAT issues regarding any property transaction such as:

We have significant experience in representing clients, both corporate and personal, in Revenue audits and investigations. The importance of planning for Revenue audits cannot be overstated, due to the strict compliance approach taken by revenue in the way they conduct audits and the low monetary threshold after which publication of default can arise.

Should you be selected for enquiry by the Revenue Commissioners our firm can be of assistance as follows:

It’s important to be aware that Revenue’s methods for selecting which businesses and taxpayers to audit are becoming increasingly sophisticated. With better use of IT systems, Revenue are gathering more and more data and also finding increasingly efficient ways of processing this data to their advantage.

Also, with Government expenditure well in excess of tax revenues, Revenue are coming under increasing pressure to identify errors and omissions in tax returns which will lead to higher returns on their audit investigations. Being mindful of this, ensuring a good compliance record and being pro-active in communications with Revenue over unusual transactions or trading histories will take you a step closer to minimising your chance of becoming the subject of an audit.

CGT is a tax on a capital gain arising on the disposal of assets owned by you. At its simplest, deducting the price you paid for an asset when you acquired it from the sale proceeds when you dispose of it gives you the chargeable capital gain.

All forms of property are regarded as assets for Capital Gains Tax purposes whether situated in or outside the State. Examples of assets are:

There are a number of exemptions from CGT such as:

In calculating the amount of tax payable, deductions are allowable for incidental costs of acquisition, such as solicitor’s fees, stamp duty etc. and incidental costs of disposal such as, solicitors/auctioneers fees etc. In addition, where an asset was acquired before 2003, inflation relief may be available, effectively adjusting the cost in line with a published inflation factor.

The first €1,270 of taxable gains by an individual in a tax year are exempt. In the case of a married couple this exemption is available to each spouse but is not transferable.

Below shows the effect of residence/ordinary residence/domicile on capital gains tax status in Ireland:

In the current market, our Capital Gains Tax planning services may be of particular interest to those considering disposing of assets. We will calculate your Capital Gains Tax liability, advise on ways of reducing it including the utilisation of tax losses, and identify the relevant payment dates.