Irish Tax Institute - TaxFind: Indirect Taxes

1. Introduction to Indirect Taxes

1.1 Explain the differences between direct and indirect taxes

1.2 Find your way through the VAT Consolidation Act 2010 (as amended)

1.3 Set out the different rates of VAT in Ireland

2. VAT in Ireland

2.1 Describe how VAT is operated in respect of actual transactions and deemed transactions

2.2 VAT on chains of transactions

2.3 Outline some basic rules and concepts of VAT

3. Irish VAT in the EU Context

3.1 Outline the European dimension to Irish VAT

3.2 Explain the role of the CJEU in respect of VAT

3.3 Identify the key sources of VAT law applicable to Irish VAT

3.4 Describe how a change in VAT rates takes effect

3.5 Describe the role of the Recast Directive in determining the VAT rates applicable in Ireland

3.6 Describe the role of each of the various institutions of the European Union which affect VAT legislation

3.7 Understand EU Directives and EU Regulations

3.8 Explain the interaction between the Recast Directive and the national VAT legislation

3.9 Explain how the Recast Directive can be amended

3.10 Explain the impact of a “derogation” in respect of VAT

3.11 Explain the concept of “mutual assistance” and describe how it operates

4. Charge to VAT

4.1 Identify if a transaction is within the scope of VAT

4.2 Outline what is meant by the “charge to VAT” in Ireland and identify the relevant criteria

4.3 Define the term “business” and identify exclusions from being “in business” for VAT purposes

4.4 Define the term “accountable person” and outline implications of being an accountable person

4.5 Outline who is required to register for VAT and set out when a trader may wish to elect to register for VAT or cancel an election

4.6 Describe the anti-fragmentation rule

4.7 Explain what is meant by a VAT exempt activity

4.8 Differentiate between a transaction that is outside the scope of VAT, a transaction that is VAT exempt and a transaction that is “zero-rated”

4.9 Explain how a person can engage in both VATable and VAT exempt activities

5. Foreign Traders

5.1 Outline when a “Foreign Trader” may become an accountable person and the related obligations

6. VAT Groups

6.1 Describe what is meant by VAT group registration and the relevant criteria

6.2 Outline advantages and disadvantages of VAT group registration

6.3 Set out any exceptions to the normal Irish VAT group registration rules

7. Supply of Goods

7.1 Define what is meant by a “good”

7.2 Define what is meant by the “supply of goods”

7.3 Outline the VAT registration thresholds for the supply of goods

7.4 Describe what is meant by a self-supply

7.5 Outline transactions that are deemed not to be a supply of goods

7.6 Define a gift for VAT purposes and outline the VAT treatment of gifts

7.7 Differentiate between supplies of goods and deemed non-supplies

8. Cross Border Supplies (Goods)

8.1 Outline the place of supply rules for the supply of goods

8.2 Outline the VAT treatment of intra-Community supplies and acquisitions of goods

8.3 Outline what is meant by triangulation and when triangulation relief is available

8.4 Outline the VAT Quick Fixes – 1 January 2020

8.5 Outline the VAT treatment of distance sales of goods in the EU

8.6 Outline the VAT treatment of exports of goods outside the EU

8.7 Outline the VAT treatment of imports of goods from outside the EU

9. Supply of Services

9.1 Define what is meant by the supply of services

9.2 Outline the VAT registration thresholds for the supply of services

9.3 Describe the self-supply rules in relation to services

10. Cross Border Supplies (Services)

10.1 Outline the general place of supply rules for the supply of services

10.2 Outline the main exceptions to the general place of supply rules

10.3 Outline how the VAT treatment of cross border supplies is affected when an agent is involved

10.4 Outline the “use and enjoyment” provisions

10.5 Outline the VAT treatment of B2C supplies of telecommunications, radio and television broadcasting and electronic services

10.6 Summarise the 1 July 2021 e-commerce changes

10.7 Outline key aspects of EU “VAT in the Digital Age” proposals

11. Agents

11.1 Outline what is meant by an “agent”

11.2 Compare the treatment of supplies made by a disclosed agent and an undisclosed agent

12. VAT Arising on Hire Purchase Agreements

12.1 Outline how the different elements of a hire purchase/credit transaction are charged to VAT

12.2 Compare the treatment when the hire purchase involves a finance company to when finance is supplied by the supplier of goods

12.3 Explain the amount chargeable to VAT under a hire purchase agreement

13. VAT Arising on the Transfer of a Business

13.1 Compare the VAT treatment of buying a business to buying shares in a company

13.2 Outline the VAT relief that applies to the transfer of a business

13.3 Compare the VAT treatment of sales related costs (professional fees) on the sale of a business and the sale of a company

14. Amount Chargeable to VAT

14.1 State the general rule for the amount chargeable to VAT

14.2 Explain how expenses incurred and re-charged on invoices are treated for VAT purposes

14.3 Explain the VAT treatment and calculate the amount chargeable to VAT

14.4 Explain the interaction of excises and VAT in determining the amount chargeable to VAT

15. Consideration

15.1 Explain the VAT treatment of non-monetary consideration

15.2 Explain when the open market value is imposed instead of the actual consideration

15.3 Explain the VAT treatment of excess consideration received by a supplier

15.4 Explain how vouchers, telephone cards, tokens and stamps are generally treated for VAT purposes

16. Rates of VAT

16.1 Outline the VAT treatment of “composite” supplies and “multiple” supplies

16.2 Outline the “two-thirds rule”

16.3 Outline the VAT rating treatment of “goods made up”

16.4 Describe the VAT treatment of food and drink prepared by a caterer

16.5 Describe the VAT rating treatment of letting of machinery

16.6 Describe the VAT rating treatment of imports of goods

16.7 Describe the VAT rating treatment of intra-Community acquisitions of goods

17. Administration Arising from Cross-Border Supplies

17.1 Describe the requirements to file INTRASTAT returns

17.2 Describe the requirements to file VIES statements

17.3 Describe how Irish VAT may be recovered by foreign traders and how foreign EU VAT may be recovered by Irish traders

17.4 Outline any reliefs that are available to Irish persons principally involved in cross-border supplies (s56 VATCA10 Authorisation)

17.5 Outline the VAT 60A relief available to non-Irish traders

18. Deductible and Non-Deductible VAT

18.1 Outline the general rule on the deductibility of VAT

18.2 List the categories of costs on which an input VAT credit generally is available

18.3 List the categories of costs on which an input VAT credit generally is not available

18.4 Define “qualifying activities” for VAT purposes and explain their relevance to the recovery of VAT paid

18.5 Outline the procedures for the apportionment of VAT

18.6 Calculate the input VAT credit when apportionment is necessary

19. Administrative Aspects of VAT

19.1 Define a “taxable period” for VAT purposes

19.2 Describe the different VAT returns and when each is applicable

19.3 Describe the Annual Return of Trading Details

19.4 Outline how to complete a VAT3 return

19.5 Outline some penalties that apply in the case of non-compliance with filing requirements

19.6 Outline options available to the Revenue when a person under-declares their VAT or over-claims a refund

19.7 Outline options available to the Revenue when a person fails to register for VAT or fails to file a return

19.8 Outline the requirements of a valid VAT invoice

19.9 Outline the time limits for issuing invoices

19.10 Outline the requirements of a valid credit note and a valid debit note

19.11 Describe the taxpayer’s obligation to keep records

19.12 Outline the Revenue’s obligations in relation to VAT registrations

19.13 Outline the taxpayer’s obligations and choices in relation to VAT registration

20. Schemes for Accounting for VAT

20.1 Outline the invoice and cash receipts methods of accounting for VAT on sales

20.2 Account for VAT on sales and purchases and reconcile to the VAT returns

20.3 Explain why special schemes exist and why they are provided for under EU legislation

20.4 Describe the optional scheme for second-hand goods, works of art, collectors’ items and antiques

20.5 Describe the mandatory scheme for Auctioneers

20.6 Describe the optional scheme for means of transport and agricultural machinery

20.7 Describe the mandatory margin scheme for travel agents

21. Introduction to VAT on Property

21.1 Outline the VAT treatment of sales of immovable property completed post 1 July 2008

21.2 Outline when the supply of immovable property is liable to VAT

21.3 Describe how supplies of residential property are treated for VAT purposes (s94(8) VATCA10)

21.4 Explain anti-avoidance provisions relating to the sale of building land (s94(3) VATCA10)

21.5 Explain how the joint option to tax supplies of property operates

21.6 Outline why a sales agreement over property should contain a VAT clause

21.7 Outline the VAT registration threshold in relation to the supply of property

21.8 Outline the VAT treatment of leases granted from 1 July 2008 including an analysis of the key features of a lease, the different types of tenancies and the legal contrast between a lease and a licence

21.9 Explain the VAT treatment where a property developer leases a residential property prior to its supply

22. Property Transactions Pre 1 July 2008

22.1 Define “a supply of immovable goods” for pre-1 July 2008 VAT purposes

22.2 Define an “interest” in immovable goods for pre-1 July 2008 VAT purposes

22.3 State the rate of VAT that applied to certain property related transactions prior to 1 July 2008

22.4 Explain why the pre-1 July 2008 rules are still relevant

22.5 List the requirements for VAT to arise on the supply of a property (pre-1 July 2008)

22.6 Define “development” for VAT purposes

22.7 Describe the Economic Value Test (EVT)

22.8 Describe the VAT treatment of the sale of a freehold interest (pre-1 July 2008)

22.9 Describe the VAT treatment of long leases created pre-1 July 2008

22.10 Describe the VAT treatment of transactions taking place after a surrender (but taking place pre-1 July 2008)

22.11 Describe the VAT treatment of short leases created pre-1 July 2008

22.12 Explain the “No Second Supply” rule and describe any cases where this rule does not apply

23. Transitional Properties

23.1 Explain why the new VAT on property system needed to incorporate some transitional rules

23.2 Outline the key issues that apply to “transitional” or “legacy” properties which fall to be taxed under the new system

24. The Capital Goods Scheme

24.1 Define a “capital good” in the context of VAT on property

24.2 Describe the Capital Goods Scheme and how it operates

24.3 Explain what is meant by a “Capital Good Record”

24.4 Outline the Capital Goods Scheme VAT treatment of the sale of a capital good

24.5 Describe how the Capital Goods Scheme applies to properties bought or built under the “old” VAT on property regime

24.6 Describe the consequences for a landlord of exercising or terminating the option to tax a letting

24.7 Calculate the VAT adjustment arising on the supply of property under the Capital Goods Scheme

24.8 Explain the Capital Goods Scheme VAT treatment where a property developer leases a residential property prior to its supply

25. Other VAT on Property Issues

25.1 Explain the “two thirds rule” in relation to property

25.2 Outline when the transfer of ownership of immovable goods is deemed not to be a supply of goods

25.3 Outline the VAT treatment of certain sub-contractor services and certain other land related services

25.4 Describe how property transactions between VAT group members are treated

25.5 Outline the VAT treatment of property transactions when a liquidator/receiver is appointed

26. Overpaid VAT

26.1 Outline when a taxpayer is entitled to a repayment of VAT

26.2 State when a taxpayer is entitled to statutory interest on the repayment of VAT

26.3 Explain the concept of “unjust enrichment” in respect of VAT reclaims

27. Appeal Procedure

27.1 Outline the appeals process in respect of VAT

27.2 Describe the role of the Court of Justice of the European Union (CJEU) in the VAT appeals process

27.3 Outline when costs of appeal may be awarded to the taxpayer

28. Revenue Powers

28.1 Cite the statutory penalties that may be sought by the Revenue in relation to VAT and state the time limits relating to these

28.2 Outline the circumstances in which the Revenue may forfeit and seize goods

28.3 Give an example of circumstances where the Revenue can impose joint and several liability (on non-VAT group members)

28.4 Outline how the findings in the Halifax case apply to Irish indirect taxes

28.5 Outline how s811 TCA 1997 applies to indirect taxes

29. Customs Duty

29.1 Outline the concept of Customs duty and when it arises

29.2 Be aware of the EU Customs territory

29.3 Outline some key pillars of Customs duty rules (classification, origin, valuation)

29.4 Outline some features of Customs duty formalities

29.5 Outline certain Incoterms

29.6 Outline some principal reliefs from Customs duty

29.7 Compute Irish Customs duty arising on an import based on information provided to you

Glossary of VAT Terms