VAT guidance updated for Finance Act 2024

Revenue has updated several manuals to reflect amendments introduced in Finance Act 2024, as well publishing a new manual on the VAT treatment of heat pump heating systems. 

The updated manuals are as follows:

• VAT treatment of Food and Drink supplied by wholesalers and retailers clarifies that the standard rate of VAT applies to juice extracted from, and other drinkable products derived from, fruit, vegetables, plants, grains, seeds, or pulses and, that milk substitute drinks derived from plants will continue to be subject to the zero rate of VAT,
• Management of special investment funds clarifies that the management of an Irish Alternative Investment Fund (AIF) managed by an Irish AIF Manager (AIFM) is covered by the fund management exemption. The exemption also applies to the management of an Irish AIF managed by a non-Irish AIFM including where the AIFM is registered with a competent authority of a Member State,
• VAT treatment of the special flat-rate scheme for farmers includes the new flat rate addition rate of 5.1 percent,
• Construction services includes a consequential amendment arising from the application of the second reduced rate to the supply and installation of low emissions heat pump heating systems.