VAT in Ireland

VAT BY NUMBERS 89% VAT SCHEMES 53% 42% Standard accounting scheme 23% 4.8% 9outof 10 businesses Special-rate baleof vestod Only 53%of businesses are very canfident they are processing their VAT correctly Only 42% of businesses are quite canfident they are processing their VAT correctly Standard-rate (majarityof goads & servioes) in Ireland (89%) are VAT registered This is the default scheme You can reclaim VAT at the point an invoiceis recelved from your 0% HOW DO BUSINESSES CALCULATE VAT? VAT RATES Zerorate faod & ds dothes supplier You are liable for the VAT on sales at the pointyou send an invoice to yourcustomer 9% 71% 10% 5% There are 5 VATrates f turnover is over €1.25m Second Reduced-ate (taurismrestaurant services, validuntl 3V13 anly 71%of business es use an Aacounts package to calculate AT 10% of businesses use Excel to calculate VAT 6 of businesses calculate WT manually automa tically fall into scheme Cash 13.5% FACT accounting scheme Reduced-ate (fuels bulding services) 33% Nearly l in 3* respandents do not understand how to account for VAT when trading abroad VAT 3-NEWLEGISLATION New legislation requires that goodsandservices bought and sold within the EU must be accounted for separately. On this scheme don't pay VAT until your austomerhas paid you You carn'treclaim VAT on your VAT REGISTRATION You will need to register for VAT if your business turnover reaches a VAT threshald: purchases until you have pald for them NEW ESI NEW Turnover must be less than E1 E2 €125m, two-thirds of businesses ES2 (servicesexparted within the EU that are VAT registered aval of this scheme goodsimported within the EL (services importad within the E (goods eported within the EU) "ADVANTAGE helps cash flow €37,500 VAT RETURNS - WHEN TO SUBMIT Since June 2012, all businesses are required to submit their VAT returnsonline via ROS Annual accounting scheme If business supplies services over 12 month peri od every every every 6 months 2 months ALL VAT registered On this scheme pay the VAT owed throughout the year by 3 months €75,000 directdebit businesses must do a return, usually every Ifyaur annual VAT Liability is between €3001 - €14,440 If your annual VAT Liability is up to €3,000 tt's based on the WAT you paid in theprevious year Ifbusiness suppliers goods over 12 manth period two months. ADVANTAGE less paperwork Source:SAGE Design Heather Griffin