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Indirect Tax Matters Newsletter | March 2022

In this edition of Indirect Tax Matters, we provide you with Deloitte commentary on topical Indirect Tax issues.

Revenue have now published its new Code of Practice for Revenue Compliance Interventions which will come into effect on 1st May 2022 and will apply to all compliance interventions notified on or after that date. This Code sets out details of Revenue's revised framework of compliance interventions. This framework provides for a consistent, graduated response to taxpayer compliance behaviour ranging from easily accessible opportunities to voluntarily correct errors up to criminal investigation for serious cases of fraud or evasion. The revised Code is being published at this time to facilitate preparation for the changes. The existing Code of Practice for Revenue Audits and other Compliance Interventions will continue to apply to all interventions currently open and any further interventions notified prior to 1 May 2022. We will issue a more detailed briefing on the new Code in the coming weeks.

As we begin 2022, with a renewed and increased focus on environmental issues we highlight some of the recent developments in various environmentally targeted tax measures at an EU level and at a local level in different EU jurisdictions. We also focus on the key elements of the Plastic Packaging Tax being introduced in the UK in April.

With the ongoing global shift by tax authorities to modernise VAT reporting in the digital age, we provide an overview of some recent developments and key areas for businesses to monitor.

In keeping with our focus on the VAT consequences of the changing business landscape, we comment on some of the VAT consequences of Transfer Pricing adjustments which is a key consideration for businesses engaging in cross border activities.

The UK’s departure from the EU has provided additional reasons for businesses carrying out “construction services” in the UK to consider their UK VAT registration obligations. In this edition, we focus on potential UK VAT implications for those in the construction sector.

Our regular update on recent decisions in Irish and EU VAT cases includes comments as to their implications for business. 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. Plastic Packaging Tax (PPT) – Effective from 1 April 2022

Emma Robinson provides an overview of the key elements of the Plastic Packaging Tax being introduced by HMRC in the UK from 1 April 2022, who will be liable to pay this tax and what are the key reporting requirements.

2. Digitalization of Indirect Tax

With analysis by Patrick Doran, we explore the evolving nature of VAT reporting in the digital age and explain some of the key changes being put in place across the globe to modernise VAT reporting.

3. VAT and Transfer Pricing

An overview of the key VAT considerations for Transfer Pricing adjustments is presented by Daniel Baquerin and John Stewart providing the key characteristics of Transfer Pricing adjustments that may give rise to VAT obligations.

4. Environmental Taxes recent updates – EU, Belgium, Italy, Spain, UK, and Slovenia

Mattia Piol provides an update on recent developments in the implementation of various environmentally targeted tax measures at an EU level and a local level in different EU jurisdictions.

5. Construction Sector NETP’s making supplies in the UK

In this article, Brian Birt outlines why businesses operating in the construction sector should now be reconsidering their UK VAT registration obligations. This article also briefly examines the requirement for UK VAT registered businesses operating in the construction sector to consider the application of the UK domestic reverse charge rules for construction services.

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

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

7. 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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