Update to VAT Tax and Duty Manual

Revenue eBrief No. 220/19

Update to VAT Tax and Duty Manual

The VAT Tax and Duty Manual has been updated to include new chapters detailing changes to the application of VAT from 1 January 2020:

  •  The VAT treatment of food supplement products and certain other products
  • The reduced rate of VAT applies to all food supplement products for human oralconsumption effective from 1 January 2020, following the enactment of Finance Bill 2019.This guidance sets out the VAT treatment of these food supplement products. It alsosets out the VAT treatment of certain other products for human consumption (certain products classified as medicines, and foods for specific groups) and liniments, ointments and rubs made from food ingredients.
  •  Substantive requirements for zero-rating intra-Community supplies
  • This guidance sets out the substantive requirements for the application of the zero-rate of VAT to an intra-Community supply (ICS) of goods and the evidence required to be retained by the supplier of the goods relating to the transport of the goods. These new measures take effect from 1 January 2020.
  •  VAT treatment of Call-off Stock Arrangements
  • This guidance sets out details of the VAT treatment of call-off stock arrangements.While goods can continue to be supplied under call-off stock arrangements under the provisions of section 23 of the Value-Added Tax Consolidation Act, 2010 until the 31stof December 2019, all goods supplied under call-off stock arrangements are specifically excluded from those provisions from the 1st of January 2020.The guidance also sets out the details on the application of a simplification measure for call-off stock arrangements which must be applied from the 1st of January 2020. This measure provides for a simplified VAT treatment of goods transferred under call-off stock arrangements where certain prescribed conditions are met.The measures set out in the guidance do not apply to a transfer of goods to or fromnon-EU Member States.
  • It should be noted that the call-off stock arrangements measure does not apply to goods transferred as consignment stock.
  •  The Chain Transactions Rule.
  • New Value-Added Tax (VAT) rules have been introduced on chain transactions. It will help traders decide how to assign the intra-Community transport of goods in certain cross border supply chains.
  • Generally, a chain transaction is a series of successive supplies of the same goods between multiple suppliers but involves only one intra-Community transport of those goods.
  • https://www.revenue.ie/en/vat/goods-and-services-to-and-from-abroad/chain-transactions/index.aspx

In addition, the Transfer of Business chapter has been updated to reflect the changes that will occur on enactment of Finance Act 2019 with regard to deductibility.

The VAT Tax and Duty Manual Index has been updated to take account of these changes.

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