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