Fundamentals of Value Added Tax VAT

Overview:

Introduction:

This training program provides essential knowledge on VAT principles, implementation, and compliance. Participants learn about taxable transactions, input tax deductions, and regulatory obligations through interactive modules and case studies, gaining practical skills to manage VAT effectively.

Program Objectives:

At the end of this program, the participants will be able to:

• Identify the advantages and disadvantages of a VAT type of tax and how it fits into the tax mix of states around the world.

• Recognize how VAT operates, particularly in respect of output tax and input tax, in such a way that it remains neutral in its application by businesses. 

• Identify how VAT applies to supplies of both goods and services, including when provided electronically and to international transactions. 

• Apply the concept of the taxable person, EU VAT group, and fixed establishment, according to the recent ECJ decisions. 

• Interpret how VAT works within the European Union’s free market, including the measures introduced to address the impact of COVID-19 and the new VAT e-commerce rules. 

• Define how the system allows for neutrality by ensuring that imports and exports are neither advantaged nor disadvantaged over domestic supplies.

• Identify the impact of exemption in VAT and how tax is calculated by businesses that deal in exempt supplies.

• Categorize some of the more important administrative issues that VAT requires.

Targeted Audience:

• Finance managers.

• Accountants.

• Accounts staff.

• Staff members with responsible for the financial and legislative obligations of their organization.

Program Outlines:

Unit 1:

History of Value-Added Tax:

• History of value-added tax.

• How the tax works.

• Its advantages and disadvantages.

• VAT in the European Union.

• Principles of the VAT System.

• Understanding how the Irish VAT System works.

• Taxable Persons and Accountable Persons – who is obliged to register for VAT?

• VAT Registration – new two-tier system!

Unit 2:

Group Registration:

• Group Registration – what this means and how it may be of benefit to you.

• Distance Sales – the hidden problems and how they may affect Irish businesses.

• VAT Returns and Payments – warehousing VAT debts due to Covid-19.

• Annual VAT Returns – the advantages and disadvantages of opting to make an annual VAT return.

• Supplies of Goods and Services – the different rules which apply to the supply of goods and the supply of services, and why these rules are very important.

Unit 3:

VAT Invoices and Credit Notes:

• VAT Invoices and Credit Notes – essential information for all businesses.

• Deductible and Non-Deductible VAT – costs on which VAT may or may not be reclaimed and the most common errors.

• The rules for reclaiming foreign VAT incurred.

• The “Two Thirds Rule” explained.

• Electronic Data Interchange (EDI) – electronic invoicing.

Unit 4:

VAT Rates:

• VAT Rates – how to determine the correct rate of VAT to charge or be charged.

• Imports and Exports of Goods – the rules explained.

• Intra-Community acquisition of Goods and Triangulation – how they differ from imports and the rules explained.

• Intra-Community supply of Goods – how they differ from exports and the rules explained.

Unit 5:

Supply and Install Contracts:

• Supply and Install Contracts – the hidden problems and what you need to know.

• Section 56 Relief – how it operates and the difference between this relief and being VAT exempt.

• VIES and Intrastat Returns – when these are due and how to complete them.