Indirect Tax Matters    

March 2019

In this edition of Indirect Tax Matters, we provide you with Deloitte commentary on topical Indirect Tax issues which we hope you find insightful. In this edition we have outlined how Brexit could impact VAT accounting in Ireland and commented on the proposed legislative changes. As the UK prepares for Brexit businesses with UK VAT registrations also have to deal with the introduction of ‘Making Tax Digital for VAT’, our article provides insights into the transition and questions how long before Ireland follows a similar path.

As VAT on property transactions is amongst the most complex areas of VAT we have three articles; a) what a tenant should consider in relation to commercial leases, b) an overview of the Capital Goods Scheme records and c) an article highlighting the importance of general VAT compliance and its implications for Relevant Contracts Tax.

Given that the Minister for Finance has intervened to postpone a controversial increase to VAT rates on food supplements brought about by a change of practice at the Revenue Commissioners we provide the background to this controversy and the current position.

Our regular update on recent decisions in Irish and EU VAT cases includes comments as to their implications for business and articles on recent EU VAT cases. We also note and comment on recent updates issued by 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. Trading with the UK - Irish VAT consequences of a no-deal Brexit

With the continued uncertainty surrounding Brexit the Irish Government has published the Brexit Contingency Action Plan - Withdrawal of the United Kingdom from the European Union (Consequential Provisions) Bill 2019. Alan Kilmartin outlines the current VAT treatment of goods moving within the EU, compared to ‘imports’ to the EU and how the proposed legislative change to VAT accounting in Ireland may help businesses mitigate cash-flow burdens.

2. Real-Time VAT Reporting – Ready, Steady, Go!

Following the comprehensive overhaul of the Irish PAYE system all eyes are on Revenue. Conor Walsh suggests why Ireland’s VAT reporting process will be overhauled next as Real-Time VAT reporting begins to take hold in Europe.

3. VAT changes on food, drink & food supplements – what’s new and why the fuss?

Sandija Veigule clarifies how recent changes made to VAT rates on food will disrupt the industry, and provides an update on the VAT treatment of food supplements. We also comment on the postponement of Revenue’s change of practice.

4. Are your tax affairs generally up to date? RCT implications

As we near closer to Revenue’s annual RCT rate review, Alan Kilmartin explains the impact this could have on your business and why you should be keeping on top of your RCT obligations.

5. Commercial Leases – VAT & RCT considerations for the tenant

Eithne Lunn provides an overview of commercial leases and how tenants can be affected by them by providing insight into some of the more common problem or difficult areas to be managed.

6. What is a Capital Goods Scheme Record?

Christopher Connolly explains the importance and rationale behind a Capital Goods Scheme record. When and how to complete the records, what should be included and whose obligation it is to keep them.

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

Learn how CJEU cases could potentially impact your business with our brief synapsis of some of the more recent decisions.

8. Irish Revenue Updates

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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