Last week, the TALC Indirect Taxes Sub-Committee convened its first meeting of the year. A delegation from Revenue’s Tax Registrations division presented to the group. We will make these slides available in due course. Below we include a summary of the key points for practitioners to consider when making a VAT registration application.
Revenue advised that when making a VAT registration application, taxpayers and their agents should consider the following (and where possible include with the application):
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Demonstrate that the applicant is an Accountable Person within the meaning of sections 5 & 9 VATCA 2010.
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Provide a brief description of the business activity.
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Provide documentary evidence of the business activity/trade in Ireland.
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Provide documentary evidence of the business activity/trade from Ireland to other EU Member States (where applicable).
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Clearly outline the place of supply of the relevant goods and/or services.
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Provide evidence for the place of supply.
Where possible, provide incoterms of sale, details of duty paid, details of where ownership is exchanged, etc.
Revenue also explained that for ‘Intention to Trade’ applications, European Courts have clearly stated that tax authorities are entitled to “objective evidence of the intention”. Revenue guidance suggests that such evidence may include leases, contracts tools of the trade, etc. In addition business plans and other such supporting documentation would also assist in such applications.
Revenue then explained some of the reasons why applications are disallowed, including:
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CRO-registered with mainly non-resident directors or a single Irish -resident director.
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No proper place of establishment, e.g. use of an agent’s address, PO Box, or virtual/serviced office as business address.
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No evidence of contracts or customers.
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Inability to produce a valid invoice.
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No employees, or only an agent/director listed as an employee.