What is VAT?

What are qualifying activities?

You can reclaim VAT on costs incurred in making taxable supplies of goods or services.

In addition, you can reclaim VAT on costs incurred in respect of certain listed activities, even though those activities are not taxable activities. 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 EU or directly in connection with the export of goods to a place outside the EU
  • services consisting of the issue of new stocks, new shares, new debentures and other new securities made to raise capital for an accountable person’s taxable supplies
  • supplies of goods or services outside the State that would be taxable supplies if made in the State.

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