The Irish Government has introduced changes in respect to the entitlement of businesses and delegates to claim back VAT on conference related accommodation expenses.
The deduction entitlements are related to cost incurred on accommodation only and does not include expenditure on food or drink or expenditure related to an exempt activity. In accordance with normal VAT rules, deductibility is allowed only where expenditure incurred is attributable to taxable supplies by a business.
Any Irish or non-Irish taxable business entitled to recover VAT will be able to reclaim the VAT element of the accommodation expenses paid by them on behalf of their delegates. Individual delegates attending a qualifying business meeting and who are entitled to recover VAT, i.e. selfemployed, can also claim. Non-Irish businesses are entitled to claim Irish VAT to the same extent as a VAT registered Irish company.
What is allowed?
A ‘qualifying delegate’ is any taxable person or a taxable person’s employee or agent who attends a qualifying conference in the course or furtherance of that person’s taxable business.
‘Qualifying accommodation’ includes rooms in hotels, guesthouses or apartments which are let as part of the short-term guest or holiday sector – the definition stretches as far as caravan parks and camping sites!
The allowance will apply from the night prior to the date on which the conference starts and end on the date on which the conference concludes. Where a delegate attends for only part of the duration of the conference, entitlement to deduct the VAT incurred on the accommodation should be reduced accordingly.
Are there exclusions?
Yes, the legislation currently only applies to conference-related accommodation. It does not extend to VAT incurred on meals or drinks, which remain non-deductible items.
The right to deduct VAT only applies to entities or individuals which are currently treated as taxable persons for VAT purposes. It does not extend to groups or organisations who are treated as VAT exempt or not in business.
Which Events Qualify?
‘Qualifying conferences’ include conferences or meetings organised for business purposes catering for a minimum of 50 people. Events catering for less than 50 people will not qualify, although a conference organised to cater for more than 50 which attracts less than that number should still qualify.
Claiming the Refund?
Irish companies or qualifying individual delegates will be able to claim the VAT back in the normal way through their VAT returns.
Non-Irish companies/delegates can obtain refunds by applying to the Revenue Commissioners as follows:
Businesses established in the EU – under the terms of the EU Eighth Directive, by submitting form VAT60EC to the Irish Revenue Authorities.
Businesses established outside the EU –under the terms of the EU Thirteenth Directive, by submitting form VAT60OEC to the Irish Revenue Authorities.
These forms may be downloaded from Revenue’s website – www.revenue.ie
The applications for refunds by out-of-State claimants should be sent to:
VAT (Unregistered) Repayments
Revenue Commissioners
3rd Floor, River House
Charlotte’s Quay
Limerick
Ireland
Who can help with your VAT refunds?
Below are a list of companies who can deal specifically with your VAT refund issues.
Tax Back International
12-14 College Green, Dublin 2
Tel: +353 1 878 3361 Fax: +353 1 878 3382
www.taxbackinternational.com
