Search Results for 'Dorothy Gallagher'

After much speculation, Minister for Finance, Michael Noonan, confirmed that the standard rate of Irish VAT is to increase from 21 per cent to 23 per cent with effect from midnight 31 December 2011. This VAT rate change is earlier than set out by the Government under the National Recovery Plan where it stated that the standard rate of VAT would only increase to 23 per cent in 2014.

Most companies only ever look at the VAT treatment of supplies. Often companies forget to look at the potential to recover more VAT on costs and almost never consider whether they have recovered too much VAT on costs.

As part of the Jobs Initiative outlined by the new Government earlier this year, a second reduced VAT rate of nine per cent is to be introduced from  July 1 2011 to December 31 2013 to help the economy grow and increase job creation, especially in the tourism sector.  

The EU member states have agreed a range of changes to the current VAT rules, known as the VAT Package. This VAT Package will come into effect across the EU on 1 January 2010 and is summarised below. You will need to consider the impact of the new measures for your business.

While most businesses in the west of Ireland have full VAT recovery and therefore often say that VAT is not a “real” cost to them, many traders have VAT tied up in stock, debtors, and costs within their company. These areas could be better managed in order to keep the cash flow cost of VAT to a minimum.

With Exchequer funds shrinking, Revenue inspectors have focused on their powers for tax collection and are moving much quicker on late tax payments especially VAT.

While most businesses in the west of Ireland have full VAT recovery and therefore often say that VAT is not a “real” cost to them, many traders have VAT tied up in stock, debtors, and costs within their company. These areas could be better managed in order to keep the cash flow cost of VAT to a minimum.

With Exchequer funds shrinking, Revenue inspectors have focused on their powers for tax collection and are moving much quicker on late tax payments especially VAT.

There have been a number of recent VAT changes in the hotel sector. While some of the changes are small, Revenue is generally interested in businesses with high cash intake to non-VAT registered customers as traders may benefit from incorrect practices. However it is not all bad news.

A number of large changes have been recently introduced in the area of penalties on underpaid tax. The changes are of particular interest in the area of VAT as VAT is a transaction based tax. Therefore a single repetitive error over a period of years can expose a business to significant penalties.