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.
Pearse Trust 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.
This is a guest post written by Ruth Skehan of Fitzwilliam Tax Consultants
Generally, an Irish company will purchase commercial property to use for the purposes of its business while the purchase of residential property by an Irish company will not necessarily be for business reasons.
The Irish Government has in its recent December budget announced an increase in the standard rate of VAT in Ireland from its current 21% to 23% with effect from 1 January 2012. Many other EU countries have also increased their VAT rates over the past two years.