What is Value-Added Tax (VAT)?

What are qualifying activities?

You can reclaim Value-Added Tax (VAT) on costs incurred in making taxable supplies of goods or services. You can also reclaim VAT on costs incurred in respect of certain listed activities, even though those activities are not taxable. These activities are known as 'qualifying activities'.

These qualifying activities are:

  • transport outside the State of passengers and their accompanying baggage
  • supplies of goods which, by virtue of the distance sales rules, are deemed to have taken place in another Member State. This is provided that the supplier is registered for VAT in that other Member State.
  • certain financial and insurance services supplied outside the European Union (EU) or directly in connection with the export of goods to a place outside the EU
  • and
  • supplies of goods or services outside the State that would be taxable supplies if made in the State.

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