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Tag: VAT

VAT on online sales

Written by David on . Posted in Tax Briefs, Taxation Posts.

The European Commission has adopted a package of measures aimed at making the VAT treatment of telecommunications, broadcasting and electronic services more business friendly.
Currently such services are taxed where the EU supplier is established. In addition non-EU suppliers must charge VAT in the Member State where the customer is established.
Many businesses have incorporated businesses in Luxembourg to avail of that jurisdiction’s low VAT rates for electronic services.
From 1st January 2015, telecommunications, broadcasting and electronic services will be taxed where the consumer is established or resides.
In the future the Commission will seek to extend the new treatment step by step to other goods and services. This complies with the notion that fundamentally, VAT is a tax on consumption, and should therefore be charged at the place of consumption.

BUDGET 2012 – THE DEVIL WILL BE IN THE DETAIL

Written by David on . Posted in News Round up.

Needless to reiterate, it isn’t great out there and the president of the Irish Tax Institute, Bernard Doherty, tells The Sunday Business Post it isn’t likely to get a whole lot better. Doherty notes we can expect the introduction of household charges and increases in VAT and capital taxes as well as possible changes affecting PRSI and pensions in the upcoming Budget but “the devil will be in the detail”.

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NO CHANGE TO 9% VAT RATE FOR TOURISM PRODUCTS

Written by David on . Posted in News Round up.

 
Minister for Tourism Leo Varadkar has said the lower 9% VAT rate for tourism products will remain in place next year.

Speaking at the official opening of the Good Food Ireland conference, Minister Varadkar said: “I can confirm that the 9% VAT rate will apply throughout 2012. This rate is significant because it principally benefits home-grown employers which are based in Ireland. Many operators moved quickly to pass the VAT cut on to their customers following its introduction. Even where the rate was not passed on, it still benefited the tourism industry by helping businesses to expand”.

VAT HIKES & BUDGET CUTS

Written by David on . Posted in News Round up.

Cliff Taylor, the editor of The Sunday Business Post, says the Vat hike will certainly hit retail sales and will affect the poor disproportionately – the question is will the measure have the desired effect of raising the bulk of tax revenues required under the terms of the so-called bailout? And now the cat is out of the bag regarding how the government intends to raise the tax component of the €3.6 billion our Troika masters are demanding.

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VAT ON BELOW COST DRINK

Written by David on . Posted in News Round up.

In a week when the Government ratcheted up a notch or three its campaign against the major supermarkets’ policy of selling below-cost alcohol, a backbench TD has turned the spotlight on how taxpayers are effectively subsidising cheap booze.

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PASSING ON THE VAT REDUCTIONS

Written by David on . Posted in News Round up.

Fáilte Ireland chief executive Shaun Quinn has written to tens of thousands of tourism businesses across the state urging them to cut their prices with immediate effect from Friday, the day when the Vat rate on goods and services in the sector falls from 13.5% to 9%, The Sunday Business Post reports.

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VAT

Written by David on . Posted in News Round up.

When it comes to taxation policy, consistency obviously isn’t the new Government’s forte. It may have ruled out more income tax increases but in other areas it would appear confusion reigns. A VAT reduction may be in the offing for some goods and particularly services but previous ‘untouchables’ now seem to be on the table.

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