Frequent question: Is there VAT on commission in Ireland?

The agent is simultaneously receiving services or goods from the principal and supplying them to the final customer. … The VAT rate applicable to that commission is the same VAT rate which applies to the goods or services supplied.

Is there VAT on commission fees?

Most commissions such as, for example, an estate agent’s commission are subject to VAT. … In general, financial services are exempt from VAT, but some supplies although connected to financial services, are not exempt.

Do agents pay VAT?

It is possible for an agent to act in their own name, so that the supplier and customer do not know each other. If this is for the supply of goods, VAT is charged on the full output value of the sale and the agent must account to HMRC for the full VAT charged.

What goods are exempt from VAT in Ireland?

0% (Zero) VAT rating includes all exports, tea, coffee, milk, bread, books, children’s clothes and shoes, oral medicine for humans and animals, vegetable seeds and fruit trees, fertilisers, large animal feed, disability aids such as wheelchairs, crutches and hearing aids.

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What is the VAT rate for professional services in Ireland?

How does the VAT rate increase impact your business? The standard rate of Irish VAT is due to increase to 23% with effect from 1 March 2021. The rate had been reduced to 21% for a six month period from 1 September 2020 to 28 February 2021.

Is VAT payable on insurance commission?

Insurance transactions are exempt from VAT. Normally VAT cannot be recovered on goods and services bought in to make exempt supplies, see paragraph 7.1 for more information. Some premiums received under contracts of insurance are liable to IPT .

Should I charge VAT to European customers?

If you provide services to customers outside the EU, you usually do not charge VAT. However, if the service is used in another EU country, that country can decide to charge the VAT.

Can estate agents charge VAT on commission?

Research by HomeOwners Alliance suggests that estate agents who charge a percentage fee of your home’s final sale price (known as ‘commission’) take between 0.75% to 3.0% as their fee, not including VAT. … That’s why you might be relieved to know that the current average commission rate, including VAT, is 1.51%.

Can you claim input VAT on commission?

The agent must declare output tax only on any commission he receives from his principal, and must issue a tax invoice to the principal so that the principal can claim the input tax on the commission.

Do estate agents have to be VAT registered?

All of the services that you are likely to provide will be taxable at the standard rate for VAT purposes. You must register for VAT once your sales of taxable services reach the current VAT threshold. …

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Is there VAT on second hand goods in Ireland?

It operates by allowing dealers in certain second-hand goods, works of art, antiques and collectors’ items to pay VAT on the difference between the sale price and the purchase price of the goods. … If the dealer chooses not to operate the margin scheme then the normal VAT rules apply.

How do I charge VAT in Ireland?

VAT is usually charged on top of your usual sale price when you are selling to private consumers in Ireland. Your customer pays the VAT over to you and you are responsible for reporting and paying this VAT to Revenue.

What is the VAT on diesel in Ireland?

All three are subject to VAT at 23%. Carbon Tax works out at 5.586 cent per litre of petrol, and 6.517 cent per litre of diesel. Both of those figures have VAT at 23% added to them.

What is the VAT on commercial vehicles in Ireland?

VAT is charged at the rate of 23%.

Is there VAT on medicines in Ireland?

However, human oral medicines are Zero rated. … Also animal oral medicines with some exceptions are Zero rated.

What is the VAT rate on commercial vehicles in Ireland?

Ireland VAT rates
Rate Type
23% Standard
13.5% Reduced
9% Reduced
Public finance