The standard Irish VAT rate will increase from 21% to 21.5% beginning December 1, 2008. This will affect clients in Ireland and those doing business with Ireland. 

How this increase may impact you: 

• If you invoice with Irish VAT, you must amend invoices to reflect the additional .5%.

• Those making purchases in Ireland for which they get no VAT relief (refund) are subject to the increase. (For example, those who are not VAT registered or those who are VAT registered but are partly exempt from VAT will be affected.) 

• Those who make electronically delivered supplies to individuals in Ireland are subject to the increase.

• Those who make distance sales of goods into Ireland are subject to the increase.

• Clients with a 13A Exemption, or those who supply goods or services to their customers with a 13A exemption will be unaffected.

• Businesses which are able to claim a VAT refund e.g. because they are VAT registered and able to take a full deduction will be affected in only a minor way – cash flow on the additional .5% until it is refunded.

Please contact your account manager for more information.