- Revenue updated guidance on VAT waiver of exemption following a High Court judgment.
- From 20 December 2024, cancellation amounts from waiver cancellations will not be collected by Revenue.
- Before 1 July 2008, leases were categorized as short or long, with short leases generally exempt from VAT.
- Landlords could waive the VAT exemption for short leases.
- No new waivers could start after 1 July 2008, but existing waivers remained valid for properties acquired before that date.
- If a waiver was canceled, a clawback mechanism required repayment of input VAT claimed in excess of output VAT paid.
- The Killarney Consortium case challenged the clawback mechanism under EU VAT law.
- The High Court ruled that the waiver cancellation was against EU law and fiscal neutrality.
- Businesses fully engaged in taxable supplies can deduct input VAT on purchases for those supplies.
Source: charteredaccountants.ie
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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