The Department of Finance in Ireland has recently released a list on its official website, disclosing the names of companies, organizations, and foundations that will be subjected to split payment starting in 2024. Split payment is a mechanism that requires buyers or clients to directly pay the VAT charged by the seller or provider to the tax authorities, rather than to the supplier. This measure is implemented by reporting the value in the “VAT Liability” field of electronic invoices.
To enforce this new system, authorization from the EU Council is necessary. Fortunately, this authorization has been granted until June 30, 2026. However, it is important to note that beginning on July 10, 2025, companies listed on the FTSE MIE index of the Italian Stock Exchange will be exempted from split payment for VAT purposes.
The application of split payment is not universal and is limited to transactions involving public administrations, specific entities, foundations, and companies that have been identified by the Department of Finance. This move aims to ensure greater transparency and efficiency in tax collection processes.
The release of this list by the Department of Finance is a significant step towards implementing the split payment mechanism in Ireland. By publishing the names of the entities subject to this measure, the government is providing clarity and guidance to businesses and individuals involved in these transactions.
The introduction of split payment is a response to the growing concern over tax evasion and avoidance. It is believed that this mechanism will help combat these issues by ensuring that VAT payments are directly remitted to the tax authorities. By involving buyers or clients in the payment process, the government aims to create a more robust and accountable system.
The decision to exclude companies listed on the FTSE MIE index from split payment for VAT purposes is an interesting development. It suggests that these companies, which are already subject to stringent regulatory requirements, have demonstrated a level of compliance and transparency that exempts them from this additional measure. This exemption may be seen as a recognition of their commitment to good governance and tax compliance.
However, it is important to note that the list published by the Department of Finance goes beyond the FTSE MIE index and includes other entities, such as public administrations, foundations, and specific companies. The inclusion of these entities indicates that they have been identified as requiring additional scrutiny and control in VAT transactions. This move highlights the government’s determination to tackle tax evasion and ensure a fair and equitable tax system.
It is worth mentioning that the source of this information is eutekne.info, and while AI technology has been utilized in the creation of this article, it is always advisable to review the original source material and seek expert advice when necessary.
In conclusion, the publication of the list by the Department of Finance is a significant development in the implementation of split payment in Ireland. By identifying the entities subject to this measure, the government aims to enhance transparency and accountability in tax collection. While companies listed on the FTSE MIE index are exempted from split payment for VAT purposes, other entities, including public administrations and specific companies, will be required to comply with this mechanism. This move underscores the government’s commitment to combating tax evasion and ensuring a fair and efficient tax system for all.