Update: VAT on Food Supplements

In our Spring issue, we commented on the Revenue’s decision to remove the concession that applied the zero percent VAT rate to the supply of certain types of minerals, vitamins and fish oils. The net effect of the removal of the concession was to increase the cost of such products by 23% from 1 March 2019.

Following petitioning and lobbying from health food stores and representative groups, the Minister for Finance has intervened and announced that he will examine the policy and legislative options for the taxation of food supplements during the summer. He also confirmed that the zero rate of VAT will continue to apply until 1 November 2019.

VAT Return of Trading Details (RTD)

All Irish VAT registered traders are required to submit a VAT Return of Trading Details (RTD) to Revenue annually following the end of their accounting period. The RTD is a statistical return that provides Revenue with a summary of goods and services supplied in the year, as well as a summary of imports and purchases. The return should include all Irish, intra-EU and overseas trade carried out by the trader. It is important that a reconciliation of the RTD to the VAT returns filed in the period is carried out to ensure all figures are correct. Discrepancies can give rise to Revenue interventions.

It is important that all traders file their RTDs on a timely basis. Where RTDs are not being filed, Revenue will withhold tax refunds, rescind tax clearance certificates and increase the RCT rate applicable to sub-contractors.

We have included below some notes on common errors made when preparing and filing RTD’s.

  • The VAT exclusive value of the supply of goods and services should be included on the return. 
  • Sales and purchases should be analysed correctly between the various VAT rates. 
  • An analysis of purchases between “items for resale” and “items not for resale” should be undertaken 
  • Details of intra-EU acquisitions should be included on the return 
  • Details of goods and services received from non EU countries correctly should be included on the return.

Please let a member of the RBK tax department know if you require any assistance completing your VAT RTD.

Charities VAT Compensation Scheme – closing date for submission of claims

30 June 2019 is the closing date for submission of claims to the Charities VAT Compensation Scheme in respect of eligible VAT paid by charities during 2018. Claims submitted after 30 June 2019 will not be accepted.

Electric Vehicles – Vehicle Registration Tax (VRT)

There is a VRT relief available on the import of electric vehicles. Revenue have confirmed that passenger cars or commercial vehicles (VRT categories A and B) that are powered only by an electric motor registered before 31 December 2021 are eligible for relief from VRT up to a maximum amount of €5,000.

Return to 'The Tax Issue - Summer 2019'

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Whilst Covid-19 has occupied the minds of most businesses for the last three months, the world of taxation does not stop. In this issue we provide an overview of the recent High Court case involving Perigo, which has raised some very interesting questions in relation to concepts of legitimate expectative in Irish tax law. We also review a number of interesting recent determinations of the Tax Appeals Commissioners. We look at updated Revenue guidance notes in relation to short term business visitors undertaking employment duties in Ireland. Finally we provide a summary of some international tax developments that Irish corporates need to be aware of including the changes in Ireland’s transfer pricing regime with effect from accounting periods beginning on or after 1 January 2020 and DAC 6 reporting obligations.


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