How to claim back the flat-rate addition

Updated on February 8, 2022

Overview

In some cases, you may be able to reclaim Value-Added Tax (VAT) through your VAT return.

This paragraph explains:

 

who can claim back VAT

what you can claim back in VAT

VAT that you are unable to claim

Someone is eligible to claim VAT back if their actions are taxable, exempt, or not related to business

how to have your flat-rate extra refunded

tax deductions for conferences that qualify

For example, adjusting the amount of VAT that has already been paid

VAT refunds from EU member states for Irish VAT-registered businesses.

The four-year deadline for requesting a refund of VAT is in place.

 

Additional information about VAT claims can also be found on the Revenue website.

Who can reclaim Value-Added Tax (VAT)?

Some of your VAT may be refunded to you. You must file a VAT 3 return every year in order to reclaim your VAT.

Items and services that are exempt from VAT cannot be reimbursed for any unused VAT.

VAT can be recovered if expenses are incurred for both taxable and nontaxed activities.

Those without a valid VAT number are subject to a different set of laws.

What VAT can you reclaim?

If you utilise goods and services for the purpose of making taxable supplies, you can claim back the VAT you pay.

As evidence, you’ll need a current VAT invoice or Customs receipt from when the purchase was made. If you’re making a claim, you’ll need proof.

What VAT can you not reclaim?

In order to recoup VAT on these charges, you must be VAT registered and only supply taxable goods.

Catering for yourself or your staff, as well as your agents or subcontractors. The only exception is if the food, drink, lodging, or other entertainment services are part of a taxable supply of services, other than qualifying lodging in connection with attendance at a qualifying conference, and they make up all or part of the cost of providing an advertising service, other than stock-in-trade cont

Persons engaged in taxable, exempt and non-business activities

You must allocate the costs between taxable, exempt, and non-business activities to determine how much VAT you can claim. Only the portion of VAT used in your taxable activity is eligible for a refund.

This must be reflected in the percentage calculated:

It is important to keep in mind the range of your total taxable supplies when determining how much of your costs are used for taxable supplies.

How to claim back the flat-rate addition

Reclaiming the flat-rate increase to your Value-Added Tax (VAT) return is possible for those who meet the requirements of being an accountable person.

You must keep all documents pertaining to the transaction in your possession at all times.

How VAT on conferences can be reclaimed

It is possible to reclaim VAT on lodging expenses incurred in conjunction with your or your representatives’ participation in a qualifying conference. The VAT can be reclaimed if the lodging is supplied at the meeting venue or in another area. On your VAT3, you can claim back the VAT you paid for this purchase.

Conferences are taxed at a lower rate under further direction.

Adjustments for Value-Added Tax (VAT) already claimed

You may be required to refund recovered VAT in certain situations.

For products or services you have not paid for within six months of obtaining a refund from Revenue, you must pay that refund in full to that department. After the six-month time has passed, you must submit a VAT return to recoup the lost VAT.

After paying for the products or services, you may be able to claim back the VAT that was paid.

Irish VAT registered traders reclaiming Value-Added Tax (VAT) from European Union (EU) Member States

EU Member States (MSs) can reimburse Irish VAT-registered businesses for VAT paid elsewhere in the EU.

Claims for electronic VAT refunds can be submitted through the Revenue Online Service (ROS) by the trader or their representative (EVR).

For more information, visit the Online services area and look under the heading “Irish VAT registered traders reclaiming VAT from European Union Member States.”