Indirect Tax Matters

December 2019

In this edition of Indirect Tax Matters, we provide you with our commentary on topical Indirect Tax issues. The first article is an update on the EU Reform to modernise the VAT System, addressing the 2020 EU VAT ‘Quick Fixes’.

Following the recent Finance Bill, we explore amendments made to Transfer of Business relief. In light of the upcoming accounting year end for many businesses. We provide a reminder that it is timely to consider, whether you are ARTD ready?

We have our regular update on recent decisions in Irish and EU VAT cases including our commentary as to their implications for business. We also note and comment on recent updates issued from the Irish Revenue Commissioners on VAT and RCT matters.

Our Indirect Tax team in Deloitte Ireland are acutely aware of the complex issues challenging businesses domestically and globally. Indirect Tax Matters is designed to provide insights to assist you in meeting those ever-evolving challenges.

1. EU cross-border chain transactions – legislative changes ahead

As part of a series of reforms aimed at enhancing the EU VAT System, the EU are introducing a series of ‘Quick Fixes’ on 1st January 2020 aimed at improving the day-to-day functioning of cross-border chain transactions. Eithne Lunn identifies and details several areas relating to supply chains for businesses to consider, such as triangulation, intermediary operator status and transport. What actions do you need to take now?

2. VAT recovery on ‘Transfer of Business’ relief transaction costs post-2019 Finance Bill

Chris Connolly reflects on amendments made to Transfer of Business (TOB) relief provisions in the 2019 Finance Bill. The Bill removes Section 59(2A) of the VAT Consolidation Act, a provision that Revenue have previously identified as unnecessary, which sets out the general rules for overhead recovery, but does not specifically provide guidance on the recovery of costs incurred in respect of TOB. This creates uncertainty, whereby CJEU case law may be relied upon for clarity.

3. VAT – Whose liability is it anyway (revisited)?

Conor Walsh provides an update on the trends across Europe regarding VAT fraud, considers recent relevant case-law and comments on the position adopted in Ireland

4. Are you ARTD Ready?

As the culmination of the accounting year fast approaches, it is timely to consider whether your business is prepared to submit its annual return of trading details to Revenue. Chris Connolly highlights a series of essential questions that your business must reflect on, in order to provide the correct information to Revenue, and which should remove the stress from your end of accounting year.

5. Recent Irish and Court of Justice of the European Union Cases

Learn how Irish Tax Appeal Commissioners and CJEU cases could potentially impact your business with our brief synopsis of some of the more recent decisions.

6. Our view on recent updates from Irish Revenue and EU Commission

Discover our insights as we reflect on ‘ebriefs’ and guidance notes issued by the Irish Revenue Commissioners on Indirect Tax issues

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