Ireland threatens repayments on outstanding VAT claims
- 24 August 2014 | Richard Asquith
Ireland is set to introduce a provision that would enable it to recover input VAT paid to Irish VAT payers where the relevant bill has not been paid.
The retrieval by the Irish Revenue of input VAT refunded through returns is to target companies that have not actually paid the supplier invoice. The measure will apply to invoices not settled within 6 months of the relevant VAT return where the purchase was declared. The provision also applies to intra-community acquisitions of supplies where the net amount has not been settled. This means the input VAT must be reversed.
As the new measure was announced in this year’s Finance Act, the potential refunds will be due in the latest VAT return, covering the two months to August.