Recent decisions made by both the First Tier Tribunal and the Upper Tribunal illustrates that HMRC’s ability to recover a VAT repayment is limited where the refund arises under a compromise agreement.Read More
Pearse Trust Blog
The UK tax authority, HM Revenue and Customs (HMRC), has clarified important changes to the way businesses in the financial industry with operations within and outside the UK calculate value-added tax.
Ireland’s decision to join the EU in 1973 marked the introduction of Value Added Tax (VAT). VAT was implemented among all member states as the turnover tax within the “common market”, and as a means of policing VAT, the ‘VAT Information Exchange System’ (VIES) was introduced in 1993.
VIES operates as a system of administrative support to member states and ensures both the registration of companies for VAT as well as the correct rate of VAT being charged on all transactions.Read More
This blog is a follow on from a previous post on the “Practical VAT Update - Ireland” and it is advisable that this is read in conjunction with the earlier blog.
VAT is a very important source of funds for the Irish government. In the last few years, there have been significant increases in various tax categories including VAT (21% to 23%). The current emphasis is to increase collection by closing tax loopholes, imposing penalties for non-compliance and improving efficiency (through electronic services) to reduce the cost of tax collection.
When an Irish company assigns a receivable, i.e. a debt that someone owes to the company, there are a number of Irish taxation issues to consider. However, by structuring the transaction and documentation in a tax efficient manner, it is possible to minimise the potential Irish tax implications.