What is VAT?

What are qualifying activities?

There are certain activities that qualify for reclaiming Value-Added Tax (VAT) even if those activities do not consist of making taxable supplies.

The 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 European Union (EU) 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.

Persons registered for VAT should, as appropriate, reclaim VAT incurred in respect of qualifying activities in the VAT 3 return. Persons not registered for VAT should reclaim such VAT using Form VAT 60E .

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