Revenue has issued an e-brief outlining the main VAT changes which arose from Finance Act 2012. These can be summarised as follows:
- Change in standard VAT rate from 21% to 23%;
- With effect from 1 May 2012 a supply of construction services by an accountable person to a connected person will be subject to a reverse VAT charge;
- The Finance Act removed a provision whereby a travel agent supplying margin scheme services which included qualifying accommodation in connection with attendance at a qualifying conference could issue for deductibility purposes, a document setting out the VAT element of the cost of that qualifying accommodation.
- From 1 March 2012 the VAT rate on district heating will be 13.5%;
- The definition of what constitutes bread has been updated to include items such as batch bread, certain bagels, baps, wraps, naan bread, pitta bread. Certain bakery products with high levels of sugar and fat such as brioche and croissants remain subject to VAT at 13.5%;
- Admissions to open farms and built and natural heritage facilities will be subject to the reduced VAT rate of 9% with effect from 1 January 2012.
More information on the above items can be found on the Revenue website at: http://www.revenue.ie/en/practitioner/tax-briefing/2012/no-012012.html
If you have any queries about any of the above items please feel free to contact us.