In this week’s EU exit corner, we bring you the latest guidance updates and publications relevant to EU exit. The most recent Trader Support Service and Cabinet Office Borders bulletins are also available. HMRC has also issued an email about the first phase of its Border Targeted Operating Model which takes effect in just under ten weeks, and will impact on movements of goods from Ireland to Great Britain. The email contains important details of actions which need to be taken and how to prepare for these changes. Miscellaneous guidance, publications etc.   The following updated guidance, and publications relevant to EU exit are available:-  Customs, VAT and excise UK transition legislation from 1 January 2021;  Reference documents for The Customs (Reliefs from a Liability to Import Duty and Miscellaneous Amendments) (EU Exit) Regulations 2020;  Reference Document for The Customs (Origin of Chargeable Goods) (EU Exit) Regulations 2020;  Reference document for authorised use: eligible goods and authorised uses;  Trade Specialised Committee on Goods;  Joint statement from the Specialised Committee on Financial Provisions, 26 October 2023; and  EM on Windsor Framework customs arrangements. 

HMRC’s latest schedule of live and recorded webinars for tax agents is available for booking. Spaces are limited, so take a look now and save your place. HMRC is also holding webinars which aim to explain its compliance professional standards. A webinar is also being held tomorrow (Tuesday 5 December) on the National Minimum Wage in the care sector.  Compliance and professional standards  HMRC is holding webinars which aim to explain its compliance professional standards. The webinars are scheduled for the following dates and times and will be recorded and available to view thereafter:-  8 December 2023 - 13:45; and  15 December 2023 - 15:45.  National minimum wage   HMRC’s National Minimum Wage team are holding a live webinar to talk through common issues found in the care sector, and how employers can protect their workers’ rights. There will also be a panel of experts on hand to answer questions on the topic - register here. 

Do you use HMRC online services? Don’t be caught out by the planned downtime to some services. HMRC are warning about the non-availability of specific services on the HMRC website, a range of services are impacted. Check the relevant page for information on planned downtime.  

Check out the latest items on the Agent Forum. Remember, in order to view each item, you must be signed up and logged in.  All agents, who are a member of a professional body, are invited to join HMRC’s Agent Forum. This dedicated Agent Forum is hosted in a private area within the HMRC’s Online Taxpayer Forum. You can interact with other agents and HMRC experts to discuss topical issues and processes. 

In a new report, the European Commission analyses the solidarity contribution applied on the unexpected surplus profits for the fossil fuel industry which arose during the 2022 energy crisis. The report sheds light on market developments in the fossil fuels sector covered by this emergency intervention since the measure was adopted in autumn 2022.

The  OECD is running a public consultation to develop an alternative definition of permanent establishment for activities in connection with the exploration and exploitation of extractible natural resources. The changes put forward in this discussion draft are expected to be included in the next update to the OECD Model and its Commentary. The consultation closes on 4 January 2024.

In Irish news, the Government announces increases to PRSI and the Minister for Finance commences various amendments to the KEEP scheme. In UK news, read our more in depth coverage of the 2023 Autumn Statement from a personal and business taxes perspective. In International news, the OECD publishes research which shows that companies in high-tax jurisdictions make up a significant proportion of companies with low effective tax rates.   Ireland  1.   The Government has agreed to increase PRSI for employers, employees and the self-employed from October 2024. 2.   The Minister for Finance, has commenced the four amendments to the Key Employee Engagement Programme (KEEP) as introduced in Finance Act 2022, following receipt of approval of State aid from the European Commission.  UK 3.   Read about the personal taxes elements of the 2023 Autumn Statement. 4.   There were also various business taxes announcements which you can read about in more detail.  International 5.   OECD paper suggests high-tax jurisdictions produce over half of low-taxed companies    Keep up to date with all the latest Irish, UK, and international tax developments through Chartered Accountants Ireland’s Tax Newsletter. Subscribe to the Tax News by updating your preferences in MyAccount.  

The Minister for Finance, Michael McGrath TD, has welcomed the publication by the European Commission of its Opinion on Ireland’s Draft Budgetary Plan (DBP), finding it to be in line with the recommendations adopted by the Council in July.  Minister McGrath said:  “I welcome the Commission’s opinion that Ireland’s Draft Budgetary Plan is in line with the fiscal guidance provided by the European Council in July’s Country-Specific Recommendations.  The Commission’s findings underline that budgetary policy must not lose sight of the importance of a prudent approach over the medium-term - we must ensure fiscal sustainability so that we are best placed to react to the highly uncertain and evolving environment.  We face significant challenges through the requirement to decarbonise our economy and the need to manage the digital transition. At the same time, publications by my Department have shown that the growth rate is set to slow over the medium- and longer-term, driven by demographic changes.  Such developments show the importance of planning for the future now. With this in mind, the Government announced the establishment of the Future Ireland Fund and the Infrastructure, Climate and Nature Fund as part of last month’s Budget. These important policy instruments will help current and future generations address the fundamental structural challenges we face and work is intensifying on bringing these initiatives to fruition.” 

Revenue has updated the Tax and Duty Manual regarding Professional Services Withholding Tax (PSWT) to include guidance in relation to payments made to medical practitioners under the General Medical Services (GMS) Scheme. The updated manual also clarifies the position where professional services are provided by a partnership, and provides a link to more detailed information on the tax treatment of GMS payments to medical practitioners.  

Revenue has issued a press release to remind online shoppers to check whether the advertised price of online goods includes all tax and duty costs due before deciding to buy. Additional charges, including VAT and Customs Duty, can apply to goods bought online from non-EU countries (including Great Britain) once the goods arrive in Ireland. Revenue also cautioned online shoppers to be wary of goods advertised online at attractively low prices, as the goods may be counterfeit.  Speaking about the additional charges which may arise when buying goods online from non-EU countries Ms. Maureen Dalton, Head of Revenue’s South East Frontier Management Branch, advised:  “All goods will be liable to VAT, whilst goods with a customs value of more than €150 will be liable to both Customs Duty and VAT. This means, for example, that an item of clothing bought online from the US or UK, at an equivalent cost of €250, could cost in the region of €97 extra for Customs Duty, VAT, insurance, and handling fees.  Before deciding to buy goods online, shoppers should therefore check whether the advertised price includes any taxes, duties or administrative fees applicable. This will ensure that they are not faced with unexpected charges on delivery.  Consumers should also be aware that a ‘.ie’ domain name does not necessarily mean that the seller is based in Ireland. Shoppers can check where a business is based by reading through the ‘About’, ‘Contact us’ and ‘Terms and Conditions’ sections of its website.”  Revenue seize counterfeit goods at the point of importation. Counterfeit goods worth almost €5.8 million were seized in 2022.  Commenting on the risks associated with counterfeit goods, Ms. Dalton cautioned:  “Imitation brand clothing, runners, handbags and mobile devices are among the counterfeit goods most commonly seized by Revenue. Some of these goods are not subject to regulation in the country where they are made and are often of a poor quality, which fails to conform with accepted safety standards.  Shoppers should therefore take care when purchasing goods online, both from a health and safety perspective, and from the perspective of making sure that they don’t suffer a financial loss when the goods they purchase are seized because they are counterfeit.”  Summarising her advice to consumers, Ms Dalton concluded:  “When shopping online, shoppers should be mindful that some deals are too good to be true, and what looks like a good decision to buy can ultimately be an expensive, or even dangerous one.”   Information on tax and duty charges that may arise on goods bought online for personal use can be found on the Revenue website.  Persons with information regarding the smuggling or sale of counterfeit goods can contact Revenue in confidence on free phone number 1800 295 295.  

Readers are reminded that Irish based platform operators should use ROS to register for DAC7 reporting obligations by this coming Thursday 30 November 2023.   Following a recent meeting of the Tax Administration Liaison Committee (TALC) BEPS DAC7 subgroup Revenue provided some updates and clarifications in relation to the filing of returns.   Addressing practitioner concerns regarding encryption of the interface (API), Revenue notes that the API is as secure as using ROS to upload a file. For that reason, filers should not be concerned about the security of unencrypted data uploaded using the API.   The group was informed that files submitted via API go on to the same queue used for files submitted via the ROS website. Revenue has explained that the reason it may take longer for those filing via API to receive status notifications is because where a Platform Operator submits a very large number of files in sequence, they get backed up in the queue. However, even in very busy periods, Revenue expects filers to receive a status notification to their ROS inbox within the hour.   Readers are reminded that a unique email address is required to register each Foreign Platform Operator. This may be of note for where there is one responsible officer across a group with multiple platform operators. As previously reported, platform operators and their agents can contact the Automatic Exchange Of Information (AEOI) helpdesk with any technical issues with registration or reporting.    Revenue has made relevant technical available on its software developers page. The File Test Facility will be open on 4 December 2023. We will continue to keep members updated via Tax News. 

The Department of Finance has published preliminary figures on 2023 Vacant Homes Tax (VHT) from the returns that were due by 7 November 2023. With over 50,000 properties reported on through Revenue’s VHT portal, as of 20 November, approximately 5,000 of these properties were declared as vacant, with 45,000 declared as occupied. Approximately 2,000 of the properties that were declared vacant have claimed an exemption from VHT, resulting in circa 3,000 properties with a liability to VHT.  Property owners are reminded that they are obliged to self-assess their liability to VHT and submit a return where relevant, even if they do not receive correspondence from Revenue. Revenue may contact further property owners at a later date following further data analysis.  Budget 2024 included an increase in the rate of VHT to five times the property’s base Local Property Tax (LPT) charge.