VALUE ADDED TAX

Master VAT with Expert Guidance from Walsh Business Consulting

At Walsh Business Consulting, our expertise lies in the realm of VAT consultancy. With a wealth of experience, we navigate the complexities of both domestic VAT matters and the international dimensions of VAT on goods and services.

Understanding Value Added Tax

Value Added Tax (VAT) is a consumption tax levied on the value added to a product or service at each stage of production or distribution. This tax is not limited to Ireland but is an EU-wide tax, harmonised with minor variations across EU member states. In an increasingly global market, understanding how VAT operates in transactions within and beyond the EU is crucial for businesses.

VAT is applicable to most goods and services bought or sold within the EU. Exports are generally exempt from VAT. However, to maintain fairness for EU producers, VAT typically applies to the importation of goods and services.

Registered taxable persons are responsible for charging and accounting for VAT, usually on a bi-monthly basis, to the revenue authorities. They can offset VAT incurred on the purchase of goods and services used in making their own taxable supplies. The rate of VAT charged varies based on the type of business, the location of the supply, and whether the buyer is a private individual or another business.

Current VAT Rates in Ireland

In Ireland, the prevailing VAT rates and registration thresholds are as follows:

Standard Rate (23%): Applicable to most goods and services not falling under reduced rate categories.

Reduced Rates:

• 13.5%: Covers specified services like electricity, building, agricultural contracting, short-term car hire, cleaning, and maintenance.
• The 9% VAT rate is a second reduced rate on gas and electricity until October 2024
• 4.8%: Applies to agricultural goods, including livestock (excluding chickens), greyhounds, and horse rentals.

Zero Rate (0%): Includes exports, tea, coffee, milk, bread, books, children's clothing and shoes, oral medicine, vegetable seeds, fertilizers, disability aids, and more.

Exempt from VAT: Most financial, medical, or educational services fall under this category. Additionally, certain live theatrical and musical performances are exempt, provided no food or drink is served during the performance.

Registration Requirements

Registration for VAT is mandatory if your turnover exceeds the following thresholds:

• Business supplying services: €40,000 per annum
• Business supplying goods: €80,000 per annum
• Intra-community acquisitions: €41,000 in a 12-month period

Specific rules apply to foreign traders supplying taxable services in Ireland or selling goods from stocks held in Ireland, mandating VAT registration irrespective of sales volume.

VAT on Property

VAT legislation concerning property transactions is complex. Our services encompass various aspects, including:

• Determining VAT applicability in property transactions.
• Calculating VAT liabilities when selling property or granting leases.
• Advising on lease surrenders or assignments.
• Managing subsequent leases following early lease surrenders.
• Guidance on Revenue concessions and anti-avoidance measures.
• VAT implications within a VAT Group setting.
• Structuring property deals effectively.

For comprehensive VAT guidance tailored to your unique circumstances, contact Walsh Business Consulting. We also offer a comprehensive listing of VAT rates in Ireland to assist you further.