The VAT Practice,
The White House, Cloncorban, Rossmore, Clonakilty,
Co. Cork
Principal: Nicholas Ryan
Tel: +353 (0)23 8838181
Mob: +353 (0)83 3340324
Fax: +353 (0)23 8838181
Email : info@thevatpractice.ie
Welcome to the VAT Practice blog. Our aim is for our blog to provide you with access to: Hot topics – which features regularly updated information, ideas and comment from The VAT Practice on Irish and international VAT issues. Talk to us – businesses can provide comment on our articles in Hot Topics and enter […]
As you can see this eBrief emphasises one of the key areas in VAT that can cause problems for both the producer/supplier and the cash business being that of the rate of VAT for products. Apply the wrong rate and this could lead to significant error and not just in monetary terms.
The accounting of VAT is another key area which encompasses the use of correct VAT rates.
EU VAT reform plans to be published in December 2011: following the EU VAT green paper on VAT reform it is envisaged that the White paper outlining the proposal s for reform is to be issued this month. The key proposals cover:
• A move towards a single, harmonised EU VAT rate across all 27 Member States.
• A uniformed and consistent set of rules covering VAT registration and VAT returns in all territories.
• Standard VAT invoice format and reporting requirements.
A key objective for all businesses is cost reduction in order to maximise profit yet recent surveys have identified that less than 20% of businesses consider VAT, a key component cost for most businesses, as part of the overall objectives in formulating a Strategy and have performance measures and goals set for the management and control of VAT.
Cash businesses should be reviewing their product lines to ensure that correct VAT rates are in place, assess their mark ups and margins to ensure they reflect the current business activity and operation and, overview their accounting systems i.e. cash registers and EPOS system to ensure compliance obligations can be met and risk of error is reduced.