Value Added Tax (VAT) in Ireland

By: EconomyWatch   Date: 30 June 2010

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In Ireland the general rate of value added taxation is 21% but there are also other rates of 13.5% and 4.8%. In Ireland value added taxes are imposed on the assets owned by various entities as well as the different services that are provided throughout Ireland. Value added taxes are also imposed on all goods that are imported into Ireland.

There are a number of regulations that are applicable for registering with the value added tax authorities in Ireland. As far as services are concerned the minimum required amount of turnover is thirty five thousand Euros and for goods the amount is seventy thousand Euros. The returns of value added taxes are filed once at a time in a space of two months. However, under certain circumstances the returns could be filed in one occasion in a year.

Value added tax in Ireland may be called a retail sales tax. In case of the luxury items bought in Ireland the tax paid is 21%. However, the tax rate that is imposed on the non-luxury products is 12.5%. People, who are from countries that are non members of the European Union are allowed to claim certain amounts of the value added taxes paid by them upon purchasing goods while staying in the country. This plan allows the costs of goods to be brought down by 17.36%.

The reduction is not applicable for services like meals and bills of hotels for example. Rather goods that are bought in the country and exported outside the European Union within a period of three months come under the purview of the value added taxes in Ireland. The visitors have to provide various papers that show that the goods have been merchandised. An example of such documentation would be the invoice bearing the stamp of the Ireland customs department.


There are certain value added tax outlets in Ireland that deal with the visitors. They provide offers known as Cashback whereby tourists gather the tax rebates when they are about to leave Ireland. There are other ways of collecting the tax rebates like filling up forms when the purchase is being made.

As per the value added tax rules that are in operation in Ireland taxes are imposed on the disposal of the taxable interest in a particular property. By disposal is meant selling off or leasing for a period of ten years or more. There are certain conditions that need to be fulfilled so that the value added taxes may be imposed on the property. One of the main conditions in this case is that the period of lease has to be at least ten years and the property has to be redevelope3d after the 31st of October, 1972.

there are certain rates that are applicable in these. In cases where the disposer of the property has held an interest in the property for a decade or more the rate of value added tax imposed is 13.5%. The rate of value added taxes imposed on the short term leases is 21% on rents in cases where exemptions have been made. The rate of value added taxes imposed on construction activities are 13.5% and in case of fittings the rate of value added taxes to be paid is 21%.


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