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Indirect Tax Matters 

September 2019 

In this edition of Indirect Tax Matters, we provide you with our commentary on topical Indirect Tax issues. The first article is an important update from HMRC regarding a change to Import VAT recovery.

A recent boost to the economy has observed a more robust approach to RCT from the Irish Revenue Commissioners. This is evident in a number of instances, with Revenue recently publishing guidance notes on the Companies Act 2014 with specific commentary in relation to RCT issues.

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 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. Recovery of Import VAT

Did you know that from the 15th July 2019, HMRC will only allow the owner of the goods at the time of import to recover the import VAT. Chris Connolly explains this recent decision from HMRC, and contextualises the inconsistency between HMRC and Irish Revenue positions in this regard.

2. Deadline approaching - Section 56B Authorisation

Have you applied for your Section 56B authorisation? If you are a VAT registered business, with exports of goods and/or supplies of contract work amounting to 75% of your total annual turnover, you may be eligible for Section 56B Authorisation. The Authorisation allows the holder to buy in most goods and services at the zero rate of VAT. Many Section 56B Authorisations have a 31st October expiration date so the deadline is fast approaching. Is it time for you to renew your application, or secure a new Section 56B authorisation.

3. Tax Advisors to the left of me, Revenue to the right, here I am, stuck in the middle with RCT!

The improving economy has led to a reinvigorated approach to Relevant Contracts Tax (RCT) by the Revenue. Ciara McMullin identifies several instances in which Revenue have adopted a more robust approach to RCT practices. Included is an update on the Tax and Duty Manual Part 38-00-01 relating to the Companies Act 2014, published by the Revenue in August.

4. VAT Deductibility for Holding Companies 

Irish Revenue recently published guidance on “VAT Deductibility for Holding Companies”. Being one the most complicated and litigated areas of VAT legislation, as demonstrated by the seventeen pages of guidance, Kate O’Toole delves into the Revenue guidance and welcomes it as a starting point for interpreting the legislation and multitude of CJEU case law which must be considered.

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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