Speaking about business and taxation in Ireland, like in other 134 countries around the globe, is inevitable to omit the
Value Added Tax (VAT). In 1965 only two countries had a VAT system, now because of the globalisation and the standardization of the taxation regulations, the number reaches 135 and is constantly and steadily growing. For a couple of decades the Value Added Tax has become an essential part of the company’s taxation and is indivisible element of the world’s transactions, business and economy.
Despite the fact that titles diverge from country to country and there is a significant variation in the VAT tax rates the essence is one and the same:
The VAT is an indirect tax, a broad-based tax on sales, with systematic crediting of tax paid on inputs. The Value Added Tax covers almost all aspects of the world’s trade and production and is imposed on imports and on the purchase of goods and services as well.
The standard VAT rate in Ireland is 21% and is higher than the standard rate in China which is 17%. Ireland, like many other countries adopted a reduced VAT rates. The reduced rates are two – 13.5 % and 4.8 % respectively and in a few cases a zero VAT rate applies. All goods and services that are not exempt or liable at zero or reduced tax rate are liable to 21% of Value Added Tax.
In general the reduced rates apply to a specific group or groups of goods and services. In Ireland the reduced rate of 13.5 % is imposed on hotel and holiday accommodations, meals, certain entertainment and maintenance services, printing materials. The lowest 4.8% rate applies only to livestock, greyhounds and hire of horses. Zero-rated goods and services include exports, certain food and beverages, oral medicine and certain books.
The Value Added Tax affects all companies that undertake a business activity in Ireland. However there are significant differences between the taxation of resident and non-resident establishments. Resident companies in Ireland have to surpass certain turnover threshold in order to become liable to a VAT registration. This requirement does not apply to a non-resident company that has no fixed establishment in Ireland. Non-resident establishments are liable to Value Added Tax right after they commit a taxable business activity in Ireland.
On the other hand non-resident companies that take part in exhibitions, conferences or trade fairs in Ireland can, if certain requirements are met, obtain a Value Added Tax refund directly from the Revenue Commissioners.
TAXBACK INTENATIONAL specializes in VAT refunds for business establishments and can get back the VAT you paid on the exhibition fees, fuel, printing materials, storage, office rent and many more! Moreover starting July 1st 2007 the VAT imposed on business accommodation in Ireland will be partly refundable too.
If incurred certain business expenses in Ireland and would like to know how much Value Added Tax is due back to you - TAXBACK International is the only thing regarding taxation you should know. Our tax advisors will give you the optimum rebate with minimum time and efforts from your side.
Our aim is to lead you through the whole VAT procedure - from VAT registration to the VAT refund itself in order to make your stay in Ireland pleasant and profitable for you and your business!
