New VAT Package 2010 – What you need to know.
December 2, 2009 in Finance by Stephen Hewitt
The following provides an overview of what you should be made aware of regarding the new VAT package for 2010.
Services Supplied Cross-Border Between Businesses
From the 1stJanuary 2010 the range of services supplied cross border between businesses subject to the reverse charge will increase (prior to these changes the reverse charge was limited e.g. fourth schedule services). There will still be some exemptions to this new rule such as services in connection with immovable property and the short term hire of transport.
Business in receipt of services from abroad will now have to review whether they will have to self account for Irish VAT on the receipt of services. Also businesses who are supplying services to foreign customers will need to consider if Irish VAT applies.
Foreign VAT Refunds
Commonly known as the eight directive refund scheme. From the 1stJanuary 2010 Irish entities will only be required to submit a single application electronically to the Irish Revenue to claim deductible VAT incurred in any of the 26 Member States. The deadline for filling the VAT refund claim will be extended to the 30th September following the end of the year in which the VAT was incurred.
New Filling Requirements
Suppliers of certain “reverse charge” services to foreign cross border businesses will now have to file a quarterly statistical VIES return electronically through the Revenue Online System (ROS).
Also VIES will now have to be filled monthly where the value of goods supplied exceeds €100,000 per quarter. This will decrease to €50,000 from 1stJanuary 2012.
A penalty of €4,000 may arise if VIES returns are submitted incorrectly, late or not at all.
If you would like anymore information on the above feel free to contact Sean McEvoy and Co Accountants on 042-9691876 or email angela@seanmcevoyandco.ie
