Our view on recent updates from Irish Revenue and EU Commission

Indirect Tax Matters December 2019

Revenue eBriefs

Change of Revenue Banking Provider (eBrief 5th September 2019)

Revenue eBrief No. 169/19

Following a Government-wide tender, Revenue has commenced a project to transition to Danske Bank as a new provider of banking services. The project will be delivered on a phased basis, with bank accounts used for Electronic Fund Transfer (EFT) tax payments being the first to transition to Danske Bank.

All impacted taxpayers in this phase have a transitional period from 9th September to 1st October.

After 1st October 2019, only a very limited number of customers (such as taxpayers who have been granted an exemption from mandatory e-filing) will be able to use the EFT option to pay their taxes. The new Danske account details applicable to these customers are now available on the Revenue website. All other customers are required to make payments on-line via ROS or myAccount post 1st October.

Budget 2020 – Excise Duty Rates (eBrief 10th October 2019)

Revenue eBrief No. 180/19

Tobacco Products

The rates of Tobacco Products Tax for cigarettes and for other tobacco products have been increased, with effect from 9th October 2019. The revised rates are set out in Schedule 1 of the Tax and Duty Manual. The increase amounts to 50 cent, inclusive of VAT, on a packet of 20 Cigarettes in the most popular price category, with pro-rata increases on other Tobacco products.

Revisions to the Code of Practice for Revenue Audit and other Compliance Interventions – (eBrief 15th October 2019)

Revenue eBrief No. 182/19

Tax and Duty Manual Code of Practice for Revenue Audit and other Compliance Interventions has been amended. The amendments primarily reflect PAYE Modernisation, but also include a number of other minor changes.

VAT Treatment of Food Supplements (eBrief 22nd October 2019)

Revenue eBrief No. 185/19

Revenue have previously stated that the standard rate of VAT applies to food supplements. However, a Revenue Concession allowed the zero rate to be applied to certain types of vitamins, minerals and fish oils. As it stands this concession no longer applies from 1st January 2020. Revenue also hold the view that as food supplements are not conventional food that they are subject to the standard rate of VAT. 

The VAT Tax and Duty Manual has been updated to reflect an amendment to Revenue guidance on the VAT treatment of food supplements. 

In light of the Minister for Finance’s plan to introduce a reduced rate of VAT (13.5%) as outlined in Section 54 of Finance Bill 2019 to all food supplement products, Revenue will delay the implementation of its current guidance until 31st December 2019. Revenue will publish new guidance if the VAT rate on food supplement products is changed.

Valuation System for New and Used Vehicles, Vehicle Registration Tax update

Revenue eBrief No. 192/19 (eBrief 4th November 2019)

The Tax and Duty Manual on the Valuation System for New and Used Vehicles, Vehicle Registration Tax Section 8 has been updated:

  • to amend the contact details of the Central Vehicle Office (paragraph 3.6) and
  • to include certain N1 vehicles on the VRT Category A minimum VRT amount requirement (Appendix 3, paragraph 4.3.1).
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