Services

Finance Bill 2024 - VAT

The Finance Bill gives effect to the measures announced in the Budget Speech, and introduces changes or clarifications on some other matters. These are summarised below.

Budget Speech measures

  • Increase in VAT registration thresholds to €85,000 for goods and €42,500 for services
  • Continuation to 30 April 2025 of the 9% rate on gas and electricity
  • Reduction to 9% in the VAT rate applying to the supply and installation of low emissions heat pump heating systems
  • Increase to the farmer’s flat rate addition to 5.1%.

Other measures introduced

  • Application of standard rate of VAT on juices extracted from and other drinkable products derived from plants, grains, seeds and pulses. This is in addition to the existing standard rated VAT treatment for similar products derived from fruit or vegetables.
  • Tightening of VAT recovery position for food, drink, accommodation or personal services incurred in relation to activities of a business subject to VAT. The amendment requires the cost is “for the purposes of” the supply of those activities, therefore requiring a direct link between the cost incurred and a re-supply of that related service.
  • Clarification of the position for VAT recovery by a person acting under a power over certain assets such as a liquidator or receiver, for costs incurred by that person (and an exclusion of recovery of the related VAT by the VAT registered asset owner).
  • Application of VAT penalty measures to Payment Service Providers for non-compliance with record keeping obligations.
  • Adjustment and curtailment of certain zero rating measures around docking, landing, loading or unloading facilities in connection with i) passenger embarkation or disembarkation or ii) importation or exportation of goods.
  • In the context of the Financial Services sector, confirmation of the VAT exemption for Alternative Investment Fund Managers, where these are registered with a relevant Authority.

While the measures of most public interest had been flagged in the Budget speech, the Finance Bill contains what are a number of technical measures which will have varying degrees of impact. Based on our experience from previous years, it is reasonable to expect additional measures to be included as the Bill is debated and goes through the Houses of the Oireachtas.

Most of the VAT changes will be effective from a future date. Where they are relevant, the business needs to ensure its systems, processes and pricing arrangements are in place to deal with transactions and measures pre and post any changes. This is to ensure the correct treatment is applied based on the rules in place at the relevant transaction time. 

Contact Us

Should you wish to discuss any aspect of vat, please contact our team.

Return to Finance Bill 2024 Commentary

Disclaimer: While every effort has been made to ensure the accuracy of information within this publication is correct at the time of going to print, RBK do not accept any responsibility for any errors, omissions or misinformation whatsoever in this publication and shall have no liability whatsoever. The information contained in this publication is not intended to be an advice on any particular matter. No reader should act on the basis of any matter contained in this publication without appropriate professional advice.

Team Members

John Moore

VAT Director

+353 1 6440100
View Profile