VAT & RCT
Value added tax (VAT) is often considered not to be an expense of a business as the cost is ultimately passed on to the customer. However where a company or trader has failed to operate VAT correctly and this comes to light in an audit, it will usually be too late to pass the charge on to the customer at which point the underpaid VAT (plus interest and penalties) can become a very significant cost for a business.
It is therefore vital to obtain proper advice in advance of any non-routine transactions, our tax specialists can provide assistance in areas such as:
- The purchase or sale of property or a business.
- The creation, sale or surrender of leases.
- EU and foreign supplies of goods and services.
- Operation of retailers / farmers special schemes.
- In house staff VAT training.
- VAT compliance and negotiating Revenue audits.
- Effective VAT cashflow management.
Relevant contractors tax, or RCT, applies to payments made under certain contracts within the construction, forestry and meat processing industries. Where the appropriate compliance procedures have not been followed, a principal contractor can be assessed to tax at 35% on all payments made to subcontractors. It is therefore vital that all the requirements of the RCT legislation are adhered to and our taxation specialists can assist you in this regard.
VAT / RCT FACTS
Value Added Tax
| Registration threshold | Supply of services | €37,500 |
| Supply of goods | €75,000 |
Cash receipt basis Either - Sales less than €1m, or 90% to unregistered persons.
VAT Rates
| Exempt | Medical, dental, financial & services etc. |
| 0% | Including most food / drink, medicine |
| 4.8% | Livestock |
| 13.5% | Including property, hotels & restaurants |
| 21% | All goods and services not chargeable at lower rates |
Pay and File 19th day after end of 2mth VAT period
Relevant Contractors Tax
| Withholding Tax Rate | 35% |
| Pay and file date | 14th day of following month |
