Irish businesses may be overpaying thousands in VAT

Many small and medium-sized enterprises (SMEs) in Ireland could be overpaying thousands of euros in VAT due to a lack of familiarity with the complexities of Ireland’s VAT regime, according to a new report.
 
Rules regarding the sales tax charged on the majority of goods and services purchased in Ireland have long been criticised for being too complex. The country’s VAT system has previously been labelled the most complex in Europe, consisting of five VAT rates and two VAT schemes.
 
This latest study by business software provider, Sage, suggests that only half of businesses are confident that they are processing VAT correctly.
 
Smaller businesses are particularly prone to error, as the majority file their returns without external assistance. Five per cent of SMEs surveyed processed their VAT returns manually, while a further 10 per cent used a simple excel spreadsheet, leaving greater room for error.
 
Miriam Berney, VAT education manager for Sage, said: "Businesses that don’t understand the VAT system are really putting themselves at a competitive disadvantage.
 
"Despite being around for years the ever-changing nature of VAT has put many business owners off from trying to fully understand what can be refunded and what scheme is best for them.
 
"A low-cost investment in technology could prevent a business from over-paying thousands in tax."
 
Whether you are a new or an existing business, at TaxAssist Accountants we can help you meet your VAT responsibilities.
 
We can deal with all of the paperwork for you whilst looking for VAT schemes you are eligible for; some VAT schemes can lead to tax savings and a reduction in bookkeeping responsibilities.
 
If you would like to discuss more about our range of services then arrange your free initial consultation with us online, or by calling our friendly team on 1890 98 76 09.


Image: Jim Woodward

Date published 12 Sep 2013 | Last updated 12 Sep 2013