Indirect Tax Matters Newsletter | September 2021

In this edition of Indirect Tax Matters we explore some key strategic VAT considerations that will be vital for businesses to consider in the coming months. For businesses planning to launch in Ireland, compliance and regulatory considerations for VAT purposes will need to be prioritised to sufficiently manage cashflow and avoid unnecessary overpayments of VAT. Joanne Clarke discusses the key regulatory and compliance obligations to consider to avoid such obstacles, as well as exploring the strategic considerations prior to launching in Ireland.

For Irish registered businesses, VAT incurred in other EU states does not have to mean an extra cost to the business. The EU has a system in place whereby a business may reclaim VAT incurred in another EU Member State, called the EVR system. If your business incurred EU VAT costs in 2020, the deadline for reclaiming this VAT through the EVR system is fast approaching. All claims for repayment of EU VAT costs from 2020 must be made through the EVR system by 30 September 2021. We outline in this month’s newsletter, how Irish registered traders can make use of this system in order to ensure they correctly reclaim any of their VAT refunds due.

The results of the pandemic are still having an effect on tax compliance, as can be seen through the delay of Revenue’s periodical review of contracts on the eRCT system. If your business has Relevant Contracts Tax obligations, we outline the details of the next Bulk Rate Review (BRR) for all contracts on the eRCT system and how to prepare for this.

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. VAT for start-ups SMEs

In this article, we discuss the top 10 VAT regulatory and compliance considerations for businesses launching in Ireland as well as strategic VAT considerations for SME’s and what Revenue interactions are imperative to consider.

2. Do you hold a current Section 56 Authorisation?

In this article, we explore the technical issues and practical implications of 56B authorisations focusing on some of the benefits and common pitfalls for companies that hold the authorisation. Holders within an upcoming expiry date should start to consider the renewal process now.

3. Did you incur EU VAT costs in 2020?

Learn more about how your business can be entitled to reclaim VAT incurred in another EU Member State in 2020 through the EVR service, deadline for claims is the end of September.

4. Overall tax compliance impact on Relevant Contracts Tax

Discover the impact that Covid19 has had on the administration of Relevant Contracts Tax (RCT) and how to prepare for the upcoming periodical review of contracts in the eRCT system.

5. 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.

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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