The first six months in 2007 experienced much activity in VAT. In particular the Revenue published a significant amount of material which provides great assistance in the practical application of the VAT system. We have set out in this bulletin a month by month summary of the principal events.
If you would like further information or have any queries concerning any of the items please get in touch with your usual contact in the tax department or:
Brian Butler
Email: bbutler@algoodbody.ie
Tel: (01) 649 2315
Fax: (01) 649 2649
January
Revenue published information leaflets concerning the following:
- solicitors
- special schemes for retailers
- repayments to unregistered persons
February
The Finance Bill 2007 contained a number of VAT provisions which were subsequently enacted. The principal items concerned the following:
- hire purchase transactions
- residential lettings
- market value rules
- conference accommodation VAT recovery
The Irish High Court issued its judgment in the “Hagemeyer” case. The judgment has significant implications for the VAT treatment of factoring.
March
Revenue published a new concession in relation to the secondment of staff from an overseas related company. Subject to certain conditions being satisfied the requirement to self-account for VAT in such scenarios no longer applies.
Revenue published draft legislation and notes for guidance on the proposed new VAT regime applying to property transactions and invited submissions from interested parties. Revenue published information leaflets concerning the following:
- advertising services
- veterinary services
- building and associated services
- distance sales in the Single Market
- second hand goods margin scheme
- expression of doubt
- money received basis of accounting
- zero rating of goods and services supplied to Section 13A traders
- sports facilities
April
Revenue published an e-brief in relation to the discontinuance of the scheme for waivers of exemption for short term lettings of residential property.
May
The European Commission published a summary of the outcome of the public consultation on the VAT treatment of financial and insurance services.
The European Commission published a summary of the outcome of the public consultation on modernising the VAT treatment of vouchers and related issues.
The Finance Act 2007 changes to the VAT treatment of hire purchase transactions came into effect from 1 May 2007.
June
Revenue issued information leaflets concerning the following:
- hire purchase transactions
- alcohol products
- conferences: VAT deductibility
- footwear
- the promotion of and admission to live theatrical and musical events.
Revenue issued a new Regulation which introduced new conditions for claiming relief in respect of bad debts.