• Service: Tax, Global Indirect Tax
  • Type: Regulatory update
  • Date: 8/15/2014

Ireland - VAT clawback may affect July/August returns 

August 15:  A potential value added tax (VAT) “clawback” may apply for taxpayers that have not paid suppliers within six months of the invoice date but have reclaimed VAT.

The most recent Finance Act introduced this provision requiring taxpayers to repay VAT claimed from Irish Revenue when the supplier is not paid in full within three VAT-able periods (i.e., six months) of recovering the VAT.

When a supplier is paid in part, a partial clawback will arise. When the debt is subsequently paid, the VAT clawback can be reversed.

The VAT return for the period July/August 2014 is the first VAT return that will be affected by these changes.

Read an August 2014 report [PDF 125 KB] prepared by the KPMG member firm in Ireland: Taxpayers may be exposed to a VAT clawback where suppliers remain unpaid at 31 August 2014

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