The Irish Finance Bill was published yesterday, 24 October, and it contains a number of VAT provisions, the most noteworthy of which are summarised below.
9% VAT rate
The retention of super reduced rate of 9% has been confirmed. This rate of VAT applies to a range of services such as restaurants and catering, hotel accommodation, newspapers, hairdressing and admission to theatres, cinemas and museums.
The Bill confirms the proposal in Budget 2014 to deny VAT input credit where a business has not paid the supplier within six months. This will take effect in respect of input VAT claimed on or after 1 January 2014.
Transfer of business – restriction on recovery of VAT on costs
Where the transfer of business provisions apply so that there is no supply for VAT purposes, the recovery of associated input VAT on costs relating to the transfer is confined to situations where the sale of the underlying assets would have given rise to VAT.
Horses and greyhounds
In response to the judgment from the Court of Justice of the European Union, VAT on the sale of certain horses and greyhounds will be increased to 9% with effect from 1 May 2014.