- Irish Revenue clarified that employers can recover VAT on costs related to establishing and managing occupational pension schemes if certain conditions are met.
- Conditions include costs being part of the employer’s general costs, invoiced to and paid by the employer, and directly linked to the employer’s taxable activities.
- In tripartite agreements, employers may recover VAT if they pay the service provider, are not reimbursed, and proper documentation is maintained.
- If employers supply services to the pension scheme for consideration, they must charge VAT and may deduct VAT if conditions are met; contributions to cover scheme costs are outside VAT scope and not deductible.
- Additional guidance clarifies VAT treatment for both defined benefit and defined contribution pension schemes.
Source: lexology.com
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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