

Fundamentals of Value Added Tax - VAT
Overview:
Introduction:
Gain a thorough understanding of the basic concepts and principles of VAT and how the tax operates both internationally and domestically. Approaches of EU and non-EU states will be compared and legal aspects considered.
Course Objectives:
At the end of this course the participants will be able to:
- Identify the advantages and disadvantages of a VAT type of tax and how it fits into the tax mix of states around the world.
- Recognize how VAT operates, particularly in respect of output tax and input tax, in such a way that it remains neutral in its application by businesses.
- Identify how VAT applies to supplies of both goods and services, including when provided electronically and to international transactions.
- Apply the concept of the taxable person, EU VAT group, and fixed establishment, according to the recent ECJ decisions.
- Interpret how VAT works within the European Union’s free market, including the measures introduced to address the impact of COVID-19 and the new VAT e-commerce rules.
- Define how the system allows for neutrality by ensuring that imports and exports are neither advantaged nor disadvantaged over domestic supplies.
- Identify the impact of exemption in VAT and how tax is calculated by businesses that deal in exempt supplies.
- Categorize some of the more important administrative issues that VAT requires.
Targeted Audience:
- Finance managers
- Accountants
- Accounts staff
- Staff members with responsible for the financial and legislative obligations of their organization.
- Anyone who wishes to be pro-active in their approach to legislative and financial compliance and anyone who wishes to undergo a refresher course in the operation of the Irish VAT System.
Course Outlines:
Unit 1:
- History of value-added tax
- How the tax works
- Its advantages and disadvantages
- VAT in the European Union
- Principles of the VAT System
- Understanding how the Irish VAT System works
- Taxable Persons and Accountable Persons – who is obliged to register for VAT?
- VAT Registration – new two-tier system!
Unit 2:
- Group Registration – what this means and how it may be of benefit to you
- Distance Sales – the hidden problems and how they may affect Irish businesses
- VAT Returns and Payments – warehousing VAT debts due to Covid-19
- Annual VAT Returns – the advantages and disadvantages of opting to make an annual VAT return
- Supplies of Goods and Services – the different rules which apply to the supply of goods and the supply of services, and why these rules are very important
Unit 3:
- VAT Invoices and Credit Notes – essential information for all businesses
- Deductible and Non-Deductible VAT – costs on which VAT may or may not be reclaimed and the most common errors
- The rules for reclaiming foreign VAT incurred
- The “Two Thirds Rule” explained
- Electronic Data Interchange (EDI) – electronic invoicing
Unit 4:
- VAT Rates – how to determine the correct rate of VAT to charge or be charged.
- Imports and Exports of Goods – the rules explained
- Intra-Community acquisition of Goods and Triangulation – how they differ from imports and the rules explained
- Intra-Community supply of Goods – how they differ from exports and the rules explained
Unit 5:
- Supply and Install Contracts – the hidden problems and what you need to know
- Section 56 Relief – how it operates and the difference between this relief and being VAT exempt
- VIES and Intrastat Returns – when these are due and how to complete them