Value Added Tax - VAT
Value Added Tax (VAT) is a tax on the value added by a business to the goods or services sold by it. In essence it is a tax paid by the final consumer of the product.
There are five rates of VAT: 0%, 4.8%, 9%, 13.5% and 23%. In addition some services such as Insurance and Banking are exempt from VAT. The 0% rate generally applies to staple goods such as basic foodstuffs. The 4.8% rate applies to live animals. The 9% rate generally applies to tourism-related services and publications. The 13.5% rate applies to a variety of other services and the 23% rate (known as the standard rate) applies to everything else.
There are five rates of VAT: 0%, 4.8%, 9%, 13.5% and 23%. In addition some services such as Insurance and Banking are exempt from VAT. The 0% rate generally applies to staple goods such as basic foodstuffs. The 4.8% rate applies to live animals. The 9% rate generally applies to tourism-related services and publications. The 13.5% rate applies to a variety of other services and the 23% rate (known as the standard rate) applies to everything else.
Registering for VAT
To register for VAT you register online through ROS. Alternatively we can arrange to register you - just ring 051-873913 for details.
Most businesses with turnover above €37,500 (for service businesses) or €75,000 (for those supplying goods) are required to register. Other businesses, such as farmers, may not be required to registered but may choose to do so in order to claim VAT refunds on their inputs. Exempt businesses are generally not required to register but may be required to in specific circumstances (e.g. Schools are required to account for "Reverse Charge" VAT when dealing with building or repair contractors).
Most businesses with turnover above €37,500 (for service businesses) or €75,000 (for those supplying goods) are required to register. Other businesses, such as farmers, may not be required to registered but may choose to do so in order to claim VAT refunds on their inputs. Exempt businesses are generally not required to register but may be required to in specific circumstances (e.g. Schools are required to account for "Reverse Charge" VAT when dealing with building or repair contractors).
Accounting for VAT
Most businesses which are registered for VAT are required to submit VAT returns every two months and pay the liability arising. Sometimes Revenue allows the filing of quarterly or annual returns depending on the type and scale of the business. At Upper Third Chartered Accountants we can file these returns on your behalf and maintain the necessary records.