Important changes to the RCT System are in effect from 1 January 2012.
The current paper-based RCT system will be replaced by an electronic system, where principal contractors will be obliged to engage with Revenue online (mandatory electronic communication). From that date, all contacts between a principal (or agent on behalf of the principal) and Revenue will be through an online process - all principals in the construction, forestry and meat processing sectors will be obliged to submit information, data, payments and returns to Revenue electronically.
For more information see the Revenue guidance on the new rules:
http://www.revenue.ie/en/tax/rct/rct-changes-2011.html
Wednesday, January 4, 2012
Budget 2012 Vat Rate Change
Budget Vat Rate Change
What is the situation regarding advance payments received before 1 January 2012?
An advance payment, including a deposit, received from a VAT-registered person before 1 January 2012, in respect of goods or services not supplied until on or after that date, is subject to VAT at 21% if the invoice relating to that payment is issued or required to be issued before 1 January. However, if the invoice relating to that payment is issued, or required to be issued, on or after 1 January 2012, the payment is taxable at 23%.
Where traders account for VAT on the cash basis, an advance payment received before 1 January is taxable at 21%, i.e. the rate in force at the time the payment is received.
An advance payment received from an unregistered person is taxable at the rate in force at the time the payment is received.
What is the situation for businesses on the invoice basis of accounting for VAT?
Where traders account for VAT on the sales or invoice basis they must account as follows:
sales to businesses - at the rate in force at the time they issue the invoice or are required to issue the invoice, whichever is the earlier;
sales to private individuals or other non-registered persons - at the rate in force at the time of the supply.
What is the situation for businesses on the cash basis of accounting for VAT?
Traders who account for VAT on the cash basis are not liable for VAT on their supplies until they receive payment. However, where they make supplies before 1 January 2012 but receive payment on or after 1 January they should account for VAT on those supplies at the 21% rate. Such traders must account for VAT at 23% on goods and services supplied on or after 1 January.
For further information please go to the following link: http://www.revenue.ie/en/press/budget/index.html
What is the situation regarding advance payments received before 1 January 2012?
An advance payment, including a deposit, received from a VAT-registered person before 1 January 2012, in respect of goods or services not supplied until on or after that date, is subject to VAT at 21% if the invoice relating to that payment is issued or required to be issued before 1 January. However, if the invoice relating to that payment is issued, or required to be issued, on or after 1 January 2012, the payment is taxable at 23%.
Where traders account for VAT on the cash basis, an advance payment received before 1 January is taxable at 21%, i.e. the rate in force at the time the payment is received.
An advance payment received from an unregistered person is taxable at the rate in force at the time the payment is received.
What is the situation for businesses on the invoice basis of accounting for VAT?
Where traders account for VAT on the sales or invoice basis they must account as follows:
sales to businesses - at the rate in force at the time they issue the invoice or are required to issue the invoice, whichever is the earlier;
sales to private individuals or other non-registered persons - at the rate in force at the time of the supply.
What is the situation for businesses on the cash basis of accounting for VAT?
Traders who account for VAT on the cash basis are not liable for VAT on their supplies until they receive payment. However, where they make supplies before 1 January 2012 but receive payment on or after 1 January they should account for VAT on those supplies at the 21% rate. Such traders must account for VAT at 23% on goods and services supplied on or after 1 January.
For further information please go to the following link: http://www.revenue.ie/en/press/budget/index.html
Thursday, September 9, 2010
Redundancy rebates
Redundancy Rebates and Tax Payment Difficulties
Where a business is awaiting a statutory redundancy rebate and it is experiencing particular difficulties in meeting its tax obligations because of a delay in receiving the repayment, then subject to satisfactory evidence being provided of the repayment due and its quantum, Revenue will be accommodating in deferring, for a reasonable period, collection or enforcement action that would otherwise ensue in the event of delayed payment of tax. To facilitate the speedy putting in place of arrangements that will allow for such an accommodation the business should provide an authorisation for payment of the rebate direct to Revenue using the form agreed between Revenue and the Department of Enterprise, Trade and Innovation, which can be found below.
The completed Application Form should be forwarded directly to the Revenue caseworker involved in managing your case, if you are unsure who is managing your case, contact the Collector General’s Office at 1890 20 30 70. (+ 00353 61 488 000 for international callers) before you complete the form
Upon receipt, Revenue will verify with the Department of Enterprise, Trade and Innovation that the amount stated is available and forward the form to the Department, together with the Revenue caseworkers contact details to facilitate the submission of the payment, directly from the Department of Enterprise, Trade and Innovation to Revenue, when the rebate is processed by that Department.
Where a business is awaiting a statutory redundancy rebate and it is experiencing particular difficulties in meeting its tax obligations because of a delay in receiving the repayment, then subject to satisfactory evidence being provided of the repayment due and its quantum, Revenue will be accommodating in deferring, for a reasonable period, collection or enforcement action that would otherwise ensue in the event of delayed payment of tax. To facilitate the speedy putting in place of arrangements that will allow for such an accommodation the business should provide an authorisation for payment of the rebate direct to Revenue using the form agreed between Revenue and the Department of Enterprise, Trade and Innovation, which can be found below.
The completed Application Form should be forwarded directly to the Revenue caseworker involved in managing your case, if you are unsure who is managing your case, contact the Collector General’s Office at 1890 20 30 70. (+ 00353 61 488 000 for international callers) before you complete the form
Upon receipt, Revenue will verify with the Department of Enterprise, Trade and Innovation that the amount stated is available and forward the form to the Department, together with the Revenue caseworkers contact details to facilitate the submission of the payment, directly from the Department of Enterprise, Trade and Innovation to Revenue, when the rebate is processed by that Department.
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