Many companies are expected to use the windfall to shore up finances hit by the lockdown, rather than cut prices. For example, Malcolm Bell, chief executive of Visit Britain, said the chancellor's move was to support business, not help holidaymakers. And many attractions such as museums, parks and zoos, might also not pass on the reduction.
McDonald's has recommended that its franchisees cut prices on an array of products, and pub chain Wetherspoon said it would reduce prices on meals, coffee and soft drinks. Image source, Getty Images. What is VAT? How much money does VAT raise? How does this compare to other taxes? How has VAT changed over time? Many of these changes are wide ranging reforms that will impact business across the board so it is imperative that your organisation is ready for them.
We have outlined below a recap of the key dates and months that you should be aware of below as well as highlighting forthcoming changes:.
Domestic Reverse Charge for construction services commenced. Guidance on these areas continues to evolve, and affected businesses should review the impact on them. Read more here. All businesses should identify steps to be taken in relation to supply chains, VAT registrations, processes and cashflow for the new EU-UK trading arrangements. Key areas which have required attention include:. The main changes are:.
Under the new regime, the recipient rather than the supplier is required to account for the VAT on certain construction services through its VAT return, instead of paying the VAT amount to the supplier. The next stage of Making Tax Digital for VAT requires taxpayers to implement digital links through their systems, in order to create the so-called unbroken electronic chain of information from the accounting system to the VAT return.
The requirements take effect from the first VAT accounting period starting on or after 1 April HMRC has defined digital links as a digital means of transferring VAT information from one software programme to another.
This could include running a VAT report in your accounting system or sales and purchase ledger reports, with automatic extraction to your calculation tool. A gap in the digital link could occur, for example, where information from VAT output files is copied across to a VAT return spreadsheet.
This includes goods purchased online and by mail order. You will have to pay VAT at the same rate as applies in Ireland for similar goods. Within the EU, VAT is usually paid in the member state you purchased the goods, however, there are some exceptions - see below. Before you make a purchase, check whether the advertised price includes tax and duty costs. Revenue has a guide to buying goods from outside the EU for personal use including information on how to calculate what you owe in duties and taxes.
However, if the supplier that you are buying the goods from has not exceeded the Distance Sales Threshold in Ireland then you will pay VAT at the rate that would apply in the country of purchase. You will usually be told the amount of VAT payable at checkout. Excisable products for example, alcohol, tobacco and oil purchased within the EU via the internet or by mail are subject to excise duty and VAT. You can buy and bring your goods other than tobacco and alcohol products from a non-EU State into Ireland without paying any taxes, if their value is no more than:.
Revenue has information if you arriving in Ireland from countries outside the EU. There are no limits on what you can buy and take with you when you travel between EU countries, as long as the products you bought are for your own personal use and not for resale. The exception to this is where you are importing a vehicle from the EU. Special rules apply in the case of goods subject to excise duty, such as alcohol and tobacco products.
Revenue has published information if you are arriving in Ireland from the EU. However, the gift must be correctly declared. If you paid VAT on your house because you bought it from a developer or builder you only have to pay stamp duty on the base price of the house — before the VAT was added.
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