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Irish Revenue Guides On Finance Bill VAT Law Changes

by Jason Gorringe,, London

08 January 2018

The Irish tax agency has released guidance on the value-added tax provisions that were included in the 2017 Finance Act, many of which became effective from January 1, 2018.

The guidance explains that the Finance Bill amended Schedule 3 of the VAT Consolidation Act 2010 to remove the reduced rate of value-added tax, of 13.5 percent, for sunbed services, installing instead the 23 percent headline rate, effective January 1, 2018.

Next, the Bill provided for an amendment to the VAT Consolidation Act in relation to the VAT exemption for educational activities. This was to newly provide that vocational training or retraining should benefit also from exemption, and empowering the Revenue to issue regulations if necessary to ensure such.

As such, paragraph 4(3)(a) provided for VAT exemption namely for the provision of children's or young people's education, school or university education, vocational training or retraining, either by: a public body; a provider, in receipt of public funds from a body specified in regulations, for the provision of such services; or a recognized school, college, or university.

The guidance says the bill confirms that the supply of goods and services (excluding research services) incidental to the provision of education or vocational training or retraining by such bodies is also exempt from VAT.

The guidance sets out the extent to which the exemption applies to such services and relevant requirements for services to qualify for exemption.

Meanwhile, paragraph 4(3)(c) provided for the continued VAT exemption for instruction in the driving of mechanically propelled road vehicles designed or constructed for the carriage of 1.5 tonnes of goods or more, of more than nine persons (including the driver).

The Finance Bill also included a number of miscellaneous amendments to the VAT Consolidation Act 2010, explained in the guidance, which are effective from December 25, 2017.

TAGS: Finance | VAT tax authority guidance | tax | value added tax (VAT) | Ireland | training | VAT legislation | tax authority | education | legislation | regulation | services

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