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 Legislative Policies and Procedures

Prompt Payment

An EU law came into effect on 7 August 2002 to combat late payment in commercial transactions. This law was implemented in Ireland by Regulations which provide that penalty interest will become payable if payments for commercial transactions are not met within 30 days, unless otherwise specified in a contract or agreement.

At present the late payment interest rate is 8% pa (that is the current ECB rate of 1% plus the margin of 7%). That rate equates to a daily rate of 0.0222%. Penalty interest due for late payments are calculated on a daily basis. This interest is automatically calculated by the Agresso system from the first date of registration. This deduction is shown in your accounts as transaction type TX ref INTxxxxx

For more information visit the  Department of Foreign Affairs and Trade

 

 

 

Tax Clearance Certificate 

As a Public Body Dublin City University is required by law to obtain a current tax clearance certificate (TCC) from all individuals, partnerships or companies in Ireland, EU or International with which it has dealings to the value of €10,000 or more (inclusive of VAT) in any twelve month period.

TCC requirement 

The Agresso system monitors this and notifies the buyer if the limit has been exceeded when the purchase order is being generated. If the supplier has reached the threshold for the first time the onus is on the buyer to obtain the certificate and submit it to the Finance Office where the supplier master file will be updated with the certificate number and renewal date.

The accounts payable section will then run a monthly report to ascertain any supplier whose certificate has expired and a renewal letter is sent to the supplier requesting an updated certificate.

For more information visit the Revenue Tax Office 

 

Construction Industry and Relevant Contracts Tax (RCT) 

 On 13 December 2011, the Minister for Finance signed the Commencement Order for the new electronic RCT system which was introduced on 1 January 2012. All principal contractors in the construction, forestry and meat processing sectors are obliged to engage electronically with Revenue and should:

New Procedures:

  • The subcontractor will not charge VAT to the Principal Contractor ie invoices received will be NET of VAT.
  • The Principal Contractor will calculate the VAT on the NET amount charged by the Subcontractor.
  • The Principal Contractor will account for the VAT directly to Revenue in his/her VAT return.
  • The invoice supplied by the Subcontractor will contain the statement “VAT on this supply to be accounted for by the Principal Contractor”

In the new system, there will be three rates: 0%, 20%, 35%. Subcontractors who satisfy the current criteria for a C2 card will qualify for the 0% rate. In certain limited cases, subcontractors will be placed at 35% e.g. subcontractors who are not registered with Revenue or where there are serious compliance issues to be addressed. All other subcontractors will be eligible for the standard 20% rate. Subcontractors who are registered for RCT in the current system will automatically be registered for RCT in the new system.All principals who are registered for RCT in the current system will automatically be registered for RCT in the new system if they are registered for ROS. Principals should therefore register for ROS as soon as possible. If assistance is required, they should contact the ROS Helpdesk at 1890 201 106 or email roshelp@revenue.ie.Principals engaging a tax advisor/agent/bookkeeper to prepare their RCT returns should ensure that their tax advisor/agent/bookkeeper is aware of these upcoming changes and is registered for ROS.All resident and non-resident contractors coming within the RCT system are affected. This includes principals and subcontractors in the Construction, Forestry and Meat Processing Sectors. Further details on how principals and subcontractors will be affected are outlined separately below.

For more information visit the Revenue Tax Office 

 

Professional Services Withholding Tax: (WT)

Any payment made on an invoice where Professional services have been provided is liable to WT i.e. a reduction of 20% on the net value of the invoice as a requirement from the Revenue Commissioners. The sum of the reductions from each payee must be paid to the Revenue Commissioners each month.

A form (F45/2 from the Revenue Commissioners- "Withholding Tax from Payments for Professional Services") is completed on foot of Invoices received for Professional services work carried out for DCU.

A copy is given to the Professional concerned together with the reduced payment (80% of fees due).

In the case of a WT certificate being mislaid please e-mail accounts.payable@dcu.ie

To re-claim WT contact:

International Claims Section
Office of the Revenue Commissioners
Government Offices

Nenagh
Co Tipperary
T: +353 67 33533
F: +353 67 44182
Email: intclaims@revenue.ie

For more information visit the Revenue Tax Office 

INTRASTAT

This applies to imports of supply of goods within the European Union (E.U.). All invoices received in the Finance office are monitored for Intrastat. Invoices received from the EU are stamped `Intrastat' and are copied and filed for inclusion in the monthly Intrastat return. For more information visit the Revenue Tax Office 

VAT on Goods and Services Imported to Ireland

When goods/services are imported to Ireland from EU member countries we are liable to make a VAT Return at Irish VAT rates to the Revenue once those goods/services are utilised in Ireland.

The invoice received from the supplier should be VAT exclusive unless the supplier has an Irish VAT number.

If the goods/service are being utilised in the country of origin then there is no liability for Irish VAT you must pay the VAT of that country. e.g.travelling to UK for a conference.

Service is being utilised in the country of origin and is therefore liable to UK VAT, NOT Irish VAT.

For more information visit the Revenue Tax Office