Ireland VAT Rate change on 1st December 2008

The VAT rate is changing in Ireland from 1st December 2008 so OPSIS have put together the following instruction sheet for our Millennium Accounts clients.

Quote from the Institute of Chartered Accountants in Ireland:-

“It’s unusual to have a rate change in the middle of a VAT period, and Revenue have issued guidance as to how the change is to apply. Like most VAT issues, the change appears trivial - until you start to think about it.

In applying the VAT change, there are two matters in particular to be taken into account - whether the trader accounts for VAT on the invoice or the cash receipts basis, and whether the customer is a business customer or an unregistered consumer. While very broadly, VAT should be charged at the rate applicable at the date of issue of the invoice, issues can arise in relation to credit notes and periodic payments.”

Irish Tax and Customs website announcement:-

Increase in the standard rate of VAT from 21% to 21.5% from 1 December, 2008

OPSIS are sending the notification out as a mailshot, but for any customers who prefer, this can be downloaded as an Adobe Acrobat PDF document from the Helpsheets section of our website using the link below:-

Amending or Creating a new VAT Rate in Millennium Accounts ( 159kb PDF format)