CSNA receives Revenue clarification on antigen test VAT query

Retailers cannot amend their output VAT without first reimbursing the affected customers



8 February 2023

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The Convenience Stores and Newsagents Association (CSNA) recently sought clarification from Revenue with regard to products bought at 23% VAT after 1 January.

The association had inquired whether it is possible that suppliers may be required to provide credit notes and to reissue invoices with the correct VAT.

The CSNA also sought Revenue’s opinion on whether a retailer is obligated to refund any customer who had the 23% legitimately applied to the product up until 20 January.

The CSNA has since received the following response from Revenue to its queries:

The backdating of the zero rate has been done on an administrative basis until the appropriate legislation is enacted.

The change in the VAT rate can be dealt with by way of a credit note, so retailers could seek a credit note from their suppliers.

If retailers don’t seek a credit note, they can reclaim the VAT they were charged in their VAT return. However, they cannot amend their output VAT without first reimbursing the customers who may have borne the cost of the overpaid tax. On that basis, the only benefit of getting a credit note from the suppliers is a cash flow one for the retailer (i.e. they don’t have to fund the VAT upfront).

To view a document from Revenue with further information relating to VAT refunds and ancillary matters – Click here.



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