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 […]
Revenue’s investigation is producing sizeable assessments where Revenue seek to correct matters by dis-applying the use of the margin scheme and looking for VAT on the full sales price achieved. A key focus appears to be authorised dealers who have been purchasing high end vehicles and/or dealer demonstrators. Taking an example of a dealer over a period of two years who has purchased vehicles from the UK on the understanding that the vendor had identified all vehicles as qualifying margin scheme vehicles. Accounting for VAT under the margin scheme with a total purchase price of Euro 100k and sold for Euro 120k results in VAT of Euro 3,739 whereas VAT on the full sales price equates to Euro 22,439 a difference of Euro 18,000 thereabouts. That is a significant assessment and one Revenue are going to pursue vigorously.
But, is it right to penalise the receiver of a supply if the error rests with the supplier? Is this an equitable approach to the management, control and policing of VAT? I would have major concerns over the approach taken.
Following the release of the AG’S opinion in the Lithuanian Sveda UAB ECJ VAT case we now wait to see if the Court decides to follow this ruling which could provide taxpayers involved in both business and non business activities with opportunities to enhance their level of input VAT recoveries.
This could provide opportunities for the Charity sector in its quest to minimise the VAT burden imposed on it.
Many of you will be aware of this from the announcement made in July 2014 and the addition it made to the Bad debt relief provisions already in place which allowed the supplier to make an appropriate adjustment for VAT declared on unpaid invoices. Revenue’s E-brief announced extensions to this provision whereby the person in […]
Over the last eighteen months or so there has been a considerable upsurge in property transactions and The VAT Practice has encountered and advised on a wide range of transactions which have continued to highlight issues with the practical application of the changes introduced in July 2008. Recently we have noticed how Revenue’s interest is […]