An Overview of VAT
Valued Added Tax (VAT), an EU indirect tax enforced in all 27 EU Member States, is charged on the supply of goods and services. It is a transaction-based tax on consumption and arises at each stage of the supply chain. Most goods and services are liable to VAT. Suppliers of such goods and services are entitled to reclaim most of the VAT incurred on the associated costs while VAT law specifically provides that certain goods and services are exempt from VAT. Suppliers of such goods and services are not entitled to reclaim any VAT incurred. As a result, VAT can often be a significant real cost for many businesses.
VAT & Risk Management
From a risk management perspective, VAT is important as it can become a significant expense if it is not correctly accounted for, due to the steep volume of transactions and the high exposure due to the cumulative effect of minor errors. Many businesses process significant number of transactions every day and even a small error rate can be material. As a result, businesses can often find an audit, by the Irish tax authorities, a costly affair. In addition, with the introduction of “tax-geared” penalties into Irish law and the potential reputational risk from publication, businesses are becoming more and more aware of the potential exposures, both financial and reputational.
Our Experience
PwC has a wealth of experience advising clients on all aspects of VAT and its associated risk. We advise across a wide spectrum of industry sectors, including financial services, retail and consumer business, technology, communications, property and the public sector. With offices located in Dublin, Cork, Galway, Limerick, Waterford, Kilkenny and Wexford, our dedicated team of experienced VAT professionals work with a broad range of business types including multi-national companies, semi-State bodies, Irish companies, privately owned organisations, entrepreneurs, family businesses, trusts, partnerships and private individuals.As PwC Ireland is part of a global tax network with offices throughout the world, we are exceptionally well placed to avail of an extensive network of VAT/GST expertise in all other jurisdictions. Please click here for more detail on the international dimension to VAT.
Our VAT team offers a broad range of innovative, specifically tailored services at a competitive cost. For further details on the VAT services our firm can provide to your business, please click here.
