Revenue has updated its VAT guidance on debt factoring and invoice discounting to reflect the Court of Justice of the European Union judgement in Case C-232/24 (Kosmiro). The revised guidance take effect from the date of publication.
The guidance outlines that debt factoring and invoice discounting are each treated as a single taxable supply of debt‑collection services, and therefore all associated services supplied as part of debt factoring and invoice discounting, including financing or advancing funds, are also subject to VAT at the standard rate.
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