Finance Bill - Brexit

Oct 23, 2017

Following the Minister’s Budget speech, where he said that Brexit will likely result in permanent changes in trading activities and patterns for Irish businesses, the Finance Bill didn’t bring any specific legislation from a Brexit perspective. As expected the 9 percent VAT rate for the tourism sector was retained and there were no specific legislative measures introduced to deal with the VAT, customs or excise regime that might apply in Ireland in a post Brexit trading world.

Chartered Accountants Ireland had called for a change to VAT import rules to deal with the upfront VAT costs that traders will face on imports from the UK under the current system which will cause cash flow problems when the UK leaves the EU and are disappointed not to see these included. Other measures announced in Budget 2018 such as the Brexit Loan Scheme and Rainy Day Fund were seen as measures to Brexit proof the economy and do not need tax legislation to be amended or introduced in order to effect same.