Irish Revenue issued notes for guidance on VAT changes established by Finance Act 2016, on 28 December 2016. The amendments provide that the turnover method is the primary method of apportionment but, where that does not correctly reflect the taxable use of dual-use inputs or have due regard to the range of the person’s activities, an alternative method of apportionment must be used.
Section 86 provides for special provisions for tax invoiced by flat-rate farmers. The amendment confirms the Budget increase in the farmers’ flat-rate addition from 5.2% to 5.4%.
The new section 86A provides for the restriction of the flat-rate addition. It is an enabling provision which gives the Minister for Finance the power to make an order to provide that the flat-rate addition payment is not applicable in respect of specified agricultural activities in certain circumstances.
Consequential amendments are made to sections 68 and 115.
