In this quarterly indirect tax update we look at:
"Two-tier” VAT registration
Revenue has introduced a “two-tier” VAT registration concept by applying a “domestic-only” or a “intra-EU” status for VAT registrations with effect from 15 June 2019.
Cost Sharing exemption - no longer available to companies in the Financial Services sector
Revenue has confirmed that the Cost Sharing exemption will no longer be available to companies in the financial services sector, following the judgements of the CJEU in the cases of DNB Banka, Aviva and Commission v Germany.
VAT deductibility of general costs for holding companies
Revenue have recently confirmed its view in relation to Irish VAT deductibility treatment for holding companies. The publication of such guidance has been greatly anticipated and it follows lengthy discussions between Revenue and various stakeholders regarding the VAT rules in this area.
Clarification of the scope of electronic publications
Revenue have recently provided guidance in determining what constitutes an e-newspaper, e-periodicals and an e-book for VAT purposes. This was prompted by the introduction of the 9% VAT rate in Finance Act 2018 to e-publications to align it with that of printed newspapers. As of 1 January 2019, the following e-publications are subject to VAT at 9%: