Irish firms ‘must assess VAT calculations’
Wednesday May 13, 2009
Growing businesses across Ireland must assess their VAT returns before sending them back to the country’s revenue commissioners, it has been claimed.
The Institute of Certified Public Accountants in Ireland (CPA Institute) claimed its members are seeing firms fall into difficultly due to a lack of credit, so they should ensure they are not overpaying to authorities.
John White, the president of the body, said such businesses should consider accounting on a cash receipts basis rather than on invoices.
"This would result in significant cash flow advantages for the business, particularly those already suffering delays in receiving payment from debtors," he explained.
Authorities should also do more to help firms on the topic, as such aid will help them "survive and recover".
It was recently revealed that the Ireland Exchequer’s VAT receipts dropped by 21 per cent during the first few months of this year.