1. Value Added Tax Value Added Tax (VAT) Indirect Tax
Charged on sales transactions
Collected by VAT registered businesses and traders
VAT Consolidation Act 2010 (VATCA)

2. Value Added Tax Value Added Tax - Definitions VAT Registered Person
Input Credit
Output VAT
VAT Exclusive
VAT Inclusive

3. Value Added Tax VAT Rates Zero Rate – 0% Reduced Rate – 13.5%
Second Reduced Rate – 9%
Standard Rate – 23%

4. Value Added Tax Exempt Supplies Exempt from VAT
Supplier of exempt supplies cannot register for VAT
Supplier of exempt supplies cannot charge VAT
Supplier of exempt supplies cannot claim input credits for VAT incurred

5. Value Added Tax Exempt Supplies Financial Services Insurance Services
Postal Services
National Broadcasting
Education
Medical, Dental, Optical, Hospital services

6. Value Added Tax Zero rated versus Exempt
Supplier of zero rated supplies must register for VAT, charge VAT and can claim input credits for VAT incurred
Supplier of exempt supplies cannot register for VAT, cannot charge VAT and cannot claim input credits for VAT incurred

7. Value Added Tax General Principles
VAT is borne by the final consumer (non-VAT registered person)
Collected at each stage of the supply chain
Each supplier has obligation to charge VAT and entitlement to claim input credits for VAT they have incurred
The VAT registered supplier acts as collector of the tax

8. Value Added Tax VAT Amount Net amount = VAT exclusive amount
Gross amount = VAT inclusive amount
VAT is calculated as a percentage of the net amount
It may also be necessary to be able convert the gross amount to the net amount

9. Value Added Tax VAT Charge – VAT charged on following transactions
The supply for consideration of goods by a taxable person acting in that capacity when the place of supply is the state
The import into the state
On the supply for consideration of services by a taxable person acting in that capacity when the place of supply is the state

10. Value Added Tax VAT Charge – VAT charged on following transactions
On intra-community acquisition for consideration by an accountable person of goods (other than new means of transport) when the acquisition is made within the state
The intra-community acquisition for consideration of new means of transport when the acquisition is made within the state

11. Value Added Tax
VAT Charge – VAT charged when all of the following conditions are met:
There is a supply of goods or services
Within the State
For consideration
Made by a taxable person
In the course or furtherance of business

12. Value Added Tax VAT Charge
There must be a direct link between the supply and the consideration

13. Value Added Tax
VAT Registration – The following must register for VAT:
Persons whose taxable supplies of services are likely to succeed €37,500 in any 12 month period
Persons whose taxable supplies of goods are likely to succeed €75,000 in any 12 month period

14. Value Added Tax
VAT Registration – The following must register for VAT:
Business persons who are normally exempt and acquire goods in excess of €41,000 annually from other EU countries
Persons making mail order/distance sales into the State, the value of which exceeds €35,000 in any 12 month period
Persons who acquire services from abroad

15. Value Added Tax VAT Registration
Sole Trader/Partnership registers using TR1, Company registers using TR2
A person who fails to register when obliged to do so is liable to penalty of €4,000
A person can deregister from VAT when:
Turnover falls below the thresholds
Person ceases to trade

16. Value Added Tax Electing to register for VAT
The following can elect to register for VAT:
Established traders who supplies do not exceed the relevant thresholds
Farmers
Sea fishermen who supply unprocessed fish to other accountable persons

17. Value Added Tax Advantages of electing to register for VAT
Recovery of VAT on start up costs
A person who makes zero rate supplies would get VAT refunds

18. Value Added Tax Disadvantages of electing to register for VAT
Cost of administration of VAT
Risk of VAT inspection
If the VAT registration is cancelled, the person may have to repay input VAT recovered