Irish VAT

VAT

VAT us a tax on consumer spending. It is the final consumer who is not registered for VAT who pays VAT as part of the price.

Registration

A taxable has to register for VAT in the following circumstances:

€35,000 -Mail order or distance selling into the state.
€37,500 -Supplying services.
€41,000 -Making acquisitions among EU member states.
€75,000 -Supplying goods not made up of more than 10% services.
*Note the actual turnover may be reduced by the VAT on purchases. To register for VAT you need to fill out a form TR1 or TR2.

Returns

Then return should be made on a VAT 3 form and returned on the 19th day of the following month of the period. If the amount paid is insufficient and the outstanding balance is more than 20% interest will be charged. Late payment of VAT are subject to 0.0322% per day.

Supply of Goods

VAT becomes due when the supply of goods or services has taken place. This includes:

Transfer of ownership of goods by agreement
Sales of moveable goods on commisson
Handing over of immovable goods
Gifts of taxable goods €20 or more exclusing VAT
Seizure of goods by a sheriff
For a complete list see http://www.revenue.ie

Supply of Services

For VAT purposes a service is anything which isn’t a good eg:

Services of accountancy, web development, plumber etc
Hiring or leasing of goods
Refraning from doing something
Place of Services

Services supplied outside the state are not liable to Irish VAT. Howver special rules apply to the following:

Property
Transport and related ancillary services
Forth schedule or received services.
Deductible VAT
VAT charged on goods and services
VAT on inputs
VAT payable on self-supply
Non-Deductible VAT

Provison of food, drink, accommodation to taxable person, his agent or his employees except when the provision represents a taxable supply by the taxable person.
Entertainment expenses incurred by the taxable person
Acquisition, hiring or leasing of motor veichles except when they are stock in trade or the business consists of hiring motor vechicles or for use in a driving school.
Purchase of petrol otherwise as stock in trade.

Reduce Audit Costs

The main way you can reduce you audit costs is by keeping proper records. If it is difficult to find the information needed to back up figures on your accounts it will add to the time taken to complete the audit and the costs will increase.

All the expenses should be back up by invoices and third party statements to show the movement. For example, if an item was purchased by credit card that item should be shown on the credit card statement. The same applies to sales. All sales should be backed up with invoices and bank statements showing the money going into the bank account.

Finally, make time available for questions from the auditor. This can save time as you might know the answer to some questions straight away but it might take the auditor sometime to figure it out.

http://www.soi.ie
info@soi.ie
01 6630087

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