Accordance » Ireland

Lower VAT rate ‘will boost Irish retail industry’

admin — Wed, 06 Jan 2010 10:25:52 +0000

The implementation of the reduced 21 per cent VAT rate will help Ireland’s retail industry become more competitive, an industry body has said.

Chambers Ireland, which represents the business interests of 13,000 firms across the country, said the new rate, combined with the return of the UK’s 17.5 per cent VAT rate, will help retailers compete with their counterparts in Northern Ireland.

The body said many Irish retailers have seen their sales figures tumble in the past 12 months as consumers migrated north of the border to take advantage of the UK’s 15 per cent VAT rate.

The new rate however, will help generate much-needed revenue and lower the rate of job losses especially in the retail sector, Chambers Ireland maintained

Ian Talbot, chief executive of the organisation, said: “In 2010 all stakeholders in the Republic must remain focussed on cost reduction with a view to enhancing Ireland’s competitiveness and assuring a speedy return to growth based on export success.”

Ireland’s finance minister Brian Lenihan announced last month that as well as VAT being reduced to 21 per cent in 2010, excise duty will also be reduced by 12 cents per pint of beer and cider.

Ireland to reduce VAT

admin — Thu, 10 Dec 2009 10:14:51 +0000

The VAT rate in Ireland will be reduced by 0.5 per cent next year, it has been announced.

Finance minister Brian Lenihan confirmed in his Budget speech that the VAT rate will be restored to 21 per cent from the current 21.5 per cent in January in a bid to discourage shoppers from crossing the border to Northern Ireland to secure cheaper prices.

Excise duty will also be reduced by 12 cents per pint of beer and cider, 28 cents per glass of spirit and 60 cents per standard bottle of wine.

The retail and hospitality sector welcomed Mr Lenihan’s plans, hoping the move will help save jobs.

Matthew Ryan, president of the Irish Hotels Federation, said the measures would go a long way to improving the state of the country’s finances.

"Overall, the budget represents a decisive approach to getting the country back on its feet and restoring confidence in the economy both nationally and internationally," he commented.

Mr Lenihan’s speech comes as his UK counterpart Alistair Darling confirmed on Wednesday (December 9th) that VAT would be rising to 17.5 per cent in January.

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Member states requested to comply with EU VAT law

admin — Tue, 24 Nov 2009 10:10:42 +0000

The European Commission has formally requested a number of member states to amend legislation which allows non-taxable companies to join VAT groups.

According to the European Commission, this current setup is "not in line with the proper application of Article 11 of the VAT Directive".

Proceedings have already begun against Ireland, Spain, Finland, Sweden, Denmark, the Netherlands and the Czech Republic.

The UK government has been given two months to amend its legislation to bring it in line with the EU otherwise the case may be referred to the European Court of Justice.

In the case of Sweden, the proceedings concern the fact that the country limits the VAT grouping system to financial and insurance services, which contravenes the VAT Directive.

Earlier this year in July, the commission adopted a communication on the VAT grouping option provided for in the VAT Directive, which set out how the regulation would be practically implemented.

Ireland loses EU VAT case

admin — Fri, 17 Jul 2009 11:29:07 +0000

Ministers in Ireland have been criticised by the European Court of Justice (ECJ) for failing to properly implement VAT legislation in the country.

The country’s government has lost a case related to its failure to make the certain operations of public bodies, including local councils, subject to the rate of tax.

A complaint about the issue arose over the fact public authorities did not need to charge VAT on parking fees, which private firms are forced to do.

Niall Campbell, global head of indirect tax at KPMG, told Business & Leadership: "The decision will impact on a range of sectors and entities, both private and state sector.

"Examples include car parking, waste management, leisure facilities and property letting. Irish law will have to be amended, which is likely to occur in the next finance bill."

The Leitrim Observer recently claimed that retailers in Ireland would like to see VAT in the country reduced.

Irish firms renew calls for VAT cut

admin — Thu, 25 Jun 2009 11:20:31 +0000

The percentage of VAT charged on goods in the Republic of Ireland should be dropped, retailers have reiterated.

According to the Leitrim Observer, many businesses have claimed that the fall in retail sales highlighted in new figures from the country’s Central Statistcs Office has been influenced by the tax.

It is believed that VAT is leading many consumers to head over the border to Northern Ireland, where the rate is lower, to buy goods.

Noel Loughlin, spokesperson for the Manorhamilton Enterprise Forum, claimed it is becoming likely that firms may close because of the problem.

He added to the newspaper: "It certainly would help to have a look at the VAT rate and I believe that something will have to done in the future."

Declan Ronayne, managing director of DSG Ireland, recently claimed in the Irish Examiner that the government should "stop playing politics with retail" and cut the rate of tax in the country.

Irish ministers urged to cut VAT

admin — Mon, 22 Jun 2009 11:45:53 +0000

The Irish government should consider cutting its VAT rate, according to DSG Retail Ireland.

According to the company, which owns high street chains including Currys and PC World, the rate of tax charged in the country should be reduced by around 3.5 per cent.

The Irish Examiner reports hopes are high that such a move would reduce the number of people in the country heading into Northern Ireland to take advantage of lower VAT on products.

Declan Ronayne, managing director of DSG Ireland, told the newspaper that the government should "stop playing politics with retail" in the region,

"If we’re arrogant enough to think we can be competitive with this rate, then we’re in a bad place," he added.

Retailers in the UK recently revealed they are against a potential rise in VAT which may come into force at the end of this year during the sales season.

Irish gov’t urged to make machinery VAT cut

admin — Thu, 04 Jun 2009 11:45:20 +0000

VAT charged farm machinery in Ireland should be cut, according to an expert.

Eamonn Tinney, the president of the Farm Tractor and Machinery Trade Association, has claimed the domestic industry is being harmed by an increase in imports from Britain.

Talking to the Irish Examiner, he claimed some firms that are importing the goods are also using bogus numbers to avoid paying the tax, which means the products are generally cheaper to buyers.

"Often the only way to get a sale is at substantial discounts to the purchase price, a serious threat to the profitability of many farm machinery businesses," he added.

Mr Tinney’s call has come after political party Fine Gael revealed proposals to cut the rate of VAT faced by the country’s small businesses.

It is hoped the reduction would have a range of benefits, including sustaining around 88,000 jobs.

Irish party plans VAT cut for SMEs

admin — Thu, 28 May 2009 11:42:11 +0000

Fine Gael has revealed proposals to cut the rate of VAT faced by Ireland’s small businesses as part of a new action plan.

The political party has claimed its new 18-point scheme would see the tax cut, while it would also encourage financial savings through energy efficiency and the removal of red tape for small and medium-sized enterprises (SMEs).

It is hoped the moves would sustain 88,000 jobs in the sector.

Enda Kenny, the party’s leader, said the plans would see it do "everything possible to ease the cost burden" for SMEs.

"As things stand there are predictions of major job losses from that sector over the coming months. Fine Gael’s proposals can help reverse that pattern of job losses," he added.

Earlier this year, it was revealed that number of VAT receipts collected by the Ireland Exchequer fell during the first few months of 2009.

Irish firms ‘must assess VAT calculations’

admin — Wed, 13 May 2009 11:12:15 +0000

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.

Irish VAT receipts ‘fall’

admin — Thu, 07 May 2009 11:56:56 +0000

New figures have revealed that the number of the Ireland Exchequer’s tax receipts fell during the first few months of 2009.

Statistics have highlighted that the department’s tax take was down 24 per cent across the four months analysed, with the number of VAT receipts down by 21 per cent to €3.8 billion (£3.3 billion).

Overall, it was also revealed that the Exchequer’s returns over the period showed a deficit of €7.3 billion.

Discussing the findings, Fine Gael finance spokesperson Richard Bruton told the Irish Times they highlighted how tax increases are not the way to "chase down" the country’s economy.

He added that cuts in investment could "destroy jobs and undermine the potential of the economy to grow".

Last week, the Irish government was urged by retailer Currys to cut its VAT rate of 21.5 per cent.