• On 1 July 2021, the VAT rules on cross-border businessto-consumer (B2C) e-commerce activities changed. The rationale for these changes is to overcome barriers to cross-border online sales and address challenges arising from the VAT regimes for distance sales of goods and for the importation of low value consignments. It is envisaged that EU Businesses will be able to grow in a simplified, fairer environment within the European Digital Single Market.
• Online sellers, including online marketplaces can register in one EU Member State and this will be valid for the declaration and payment of VAT on all distance sales of goods and cross-border supplies of services to customers within the EU. Businesses should benefit from a reduction in red tape of up to 95% by registering with the new One Stop Shop (OSS).
• The existing thresholds for distance sales of goods within the EU will be abolished and eplaced by a new EU-wide threshold of €10,000. Below this €10,000 threshold, the supplies of TBE (telecommunications, broadcasting and electronic) services and distance sales of goods within the EU may remain subject to VAT in the Member State where the taxable person is established.
• The VAT exemption on importation of small consignments of a value up to €22 will be removed. This means all goods imported in the EU will now be subject to VAT. The Import One Stop Shop (IOSS) has been created to simplify the declaration and payment of VAT. For consignments of €150 or less imported directly from Non-EU countries, businesses can now charge VAT at the point of sale instead of customers having to pay import VAT on delivery.
• For Non-EU based suppliers they must either register for IOSS through an EU established intermediary, or, should the country where they are established have a mutual assistance agreement with the EU, then they can register for IOSS directly.

 
If your business if affected by these changes – talk to us today

TWSS operated from 26 March to 31 August 2020.
Revenue are currently providing a reconciliation to all employers. It will ensure that there is an accurate reconciliation between the:

• subsidy amounts paid by Revenue to employers

and

• subsidy amounts that were properly payable to employers for relevant employees and paid to those employees.

Where Revenue has paid an employer a temporary wage subsidy in relation to a specified employee, and the employer did not pay that employee an additional amount equivalent to the temporary wage subsidy, or the employer was not entitled to receive a subsidy in respect of an employee, the employer is obliged to refund the subsidy.

The Stay and Spend Tax Credit is a new tax credit available for the years 2020 and 2021. You can claim the Stay and Spend credit for qualifying expenditure incurred between 1 October 2020 and 30 April 2021. This includes expenditure on either:

• holiday accommodation
  
• ‘eat in’ food and drink

The minimum spend is €25 per transaction. You must submit a copy of your receipt with the claim. A ‘qualifying service provider’ must provide the service. Qualifying service providers are those who have registered with Revenue to participate in the scheme. The maximum tax credit available under the scheme is €125 when you spend a total of €625. The maximum tax credit available for those under joint assessment is €250 when you spend a total of €1,250. The tax credit will used to reduce your IT liability. Any excess credit may then be off set against your liability to USC. You must have an IT or USC liability to offset against the credit to claim same.

​The Revenue Commissioners recently announced that if taxpayers file and pay their income tax online then their filing deadline has been extended to 10 December 2020. However, if you are unable to pay the balance of tax for 2019 and meet your full 2020 preliminary tax requirements then your filing date is 31 October 2020.
 
With all of the confusion in business at the moment we would like to point out that for those struggling to pay the 2019 income tax liability this extension does not apply to you. We would recommend all clients contact us sooner rather than later in relation to their 2019 income tax. If you can avail of the extended deadline we will set the payment date for the 10 December 2020.
 
Please do not hesitate to contact us with any queries.

The Revenue have confirmed that employers will not be able to back date a registration for the new Employee Wage Subsidy Scheme (EWSS). However an employer can register for the scheme at any stage once they meet the criteria, even if this is after the September payroll is run. Once registered you will only receive the subsidy for all future payroll runs.