The CSNA has acquired the services of a VAT expert who can help retailers ensure they are not encountering errors in dealing with their VAT throughput
Jan 16 2012
Announced by Finance Minister Michael Noonan, the VAT rate change from 1 January 2012 (a Sunday) needs particular attention, says the CSNA
A key objective for all businesses is cost reduction in order to maximise profit. A recent survey in Ireland found that less than 20% of businesses consider VAT as part of the overall objective in formulating a strategy in cost control.
As much as 10% of VAT throughput, even with managed controls in place still experiences errors. Put another way, if your business has a €2m turnover with a €180k VAT throughput, these errors, excluding interest and penalties could be €18k in error. If unchecked and subsequently identified by Revenue, penalties and interest could lead to a crippling six figure cost. The CSNA has acquired the services of a VAT expert to deal with VAT matters. If you wish to learn more about his service, please contact the office for further details.
The Budget announcement of the VAT rate change from 1 January 2012 (a Sunday) needs particular attention.
Businesses operating on a cash receipts basis should apply the VAT rate applicable at the time a payment is received when dealing with both advance payments and credit notes. There is, of course, an administrative cost in reviewing VAT compliance functions to ensure the rate change is applied to all products covered. Invoicing and accounting systems need to be amended to reflect the change, as do cash registers and EPOS systems. It is imperative that the current rate is retained within the systems used to ensure your business can managed credit notes and those transactions that may still be taxable at the current rate (i.e. ongoing contracts entered into). Invoicing templates and support documents will also need to be revised, as will shelf-edge labels.