Revenue have updated the guidance material on the operation of the Section 56 authorisation system. Generally, a VAT registered entity is eligible to apply for a Section 56 authorisation where over 75% of their annual turnover is derived from qualifying sales, namely; intra-community supplies of goods, exports and certain contract work. Revenue will grant the trader a VAT56B authorisation.
The EU VAT e-Commerce Package which came into effect from 1 July 2021 has been well publicised over the past 12 months. One particular aspect of the changes was in relation to VAT due on distance sales of goods imported from outside the EU - the previous low value consignment VAT relief is now abolished. This means that all goods are now subject to VAT (previously goods under €22 were not subject to VAT).
Two or more persons may decide to operate as a single VAT registered body for the purposes of VAT - known as a VAT group. To form a VAT group, an application must be made to Revenue and approval is at the discretion of the Revenue.
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