Tax Appeals Commission determination 18TACD2018 regarding VAT, 2018

Administrative Decision Number18TACD2018
Date05 September 2018
Subject MatterVAT
1. This is an appeal pursuant to Value Added Tax Consolidation Act 2010 (VATCA), section
119(1)(h) against a refusal by the Respondent to refund the Value Added Tax (VAT) in
respect of a deduction for tax paid on the purchase of goods that was included in the
return for the VAT period November/December 2008 against the Appellant’s VAT
liability for the earlier period July/August 2008 on the grounds that the Appellant’s
application for an offset was made on 22nd May 2013 and therefore outside of the four
year time limit to which the claim relates as prescribed by VATCA, section 99(4).
2. The Appellant carried on a business in Redacted before going into liquidation on 24th
3. The bi-monthly VAT 3 returns for July/August 2008, September/October 2008,
November/December 2008, January/February 2009, March/April 2009 and May/June
2009 taxable periods were filed by the Appellant on 22nd May 2013.
4. The VAT payable/repayable position on the basis of the returns is as follows:
Payable Repayable
July/August 2008 €34,125
September/October 2008 €1,133
November/December 2008 (€29,442)
January/February 2009 €1,157
March/April 2009 (€1,235)
May/June 2009 Nil Nil
5. The VAT payable figure of €34,125 for the taxable period July/August 2008 equates to
the VAT amount on a sale of equipment by the Redacted to Redacted in August 2008.
The sales invoice is dated 28th August 2008 and is shown in the sales listing for the
taxable period July/August 2008 provided by the Appellant to the Respondent in
correspondence of 18th October 2013.
6. The purchase invoice dated 1st October 2008 is recorded in the November/December
2008 taxable period. The payment of monies to Bank was made at the start of
November 2008.
7. The VAT repayable figure of €29,442 for VAT taxable period November/December 2008
refers in most part to the purchase of the same equipment by the Appellant from Bank
which included VAT of €30,450.
8. The VAT repayment claim of €29,442 for November/December 2018 VAT period was
denied by the Respondent on the basis that it was outside of the four year time limit to
which the claim relates as required by VATCA, section 99(4).
9. VATCA, Chapter 1, Part 8 sets out the procedures for deducting VAT on goods and
services that are used for the purpose of a taxable business. Contained within that
Chapter is section 59(2) with provides inter alia:
Subject to subsection (3), in computing the amount of tax payable by an
accountable person in respect of a taxable period, that person may, in so far as the
goods and services are used by him or her for the purposes of his or her taxable
supplies or of any of the qualifying activities, deduct
(a) the tax charged to him or her during the period by other accountable persons
by means of invoices, prepared in the manner prescribed by regulations, in
respect of supplies of goods or services to him or her”
10. VATCA, section 74 sets out the various rules for the time when VAT becomes due, or
when a liability to VAT arises, in respect of supplies of goods and services. VATCA,
section 74(1) provides that in relation to a transaction between taxable persons, the VAT
becomes due on the date of issue of the invoice, or, if the invoice has not been issued at
the proper time, on the date on which it should have been issued.
11. The general provision for refunds of VAT is set out in VATCA, section 99 and provides,
inter alia:

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