VAT on property: Revenue updated guidance on Transfer of Business

When you buy, sell or let property it is critical to consider the VAT implications and ensure that you include the appropriate wording in the relevant contract for sale or lease to manage your VAT position.

Before this update

Revenue have recently updated their guidance on the application of transfer of business provisions to property transactions. Before this change where a VAT registered purchaser was purchasing property, which had previously been let then transfer of business generally applied. Accordingly, if the property was “new” VAT was deemed to have applied on the sale price and if the property was an “old property” the purchaser took over the remaining VAT capital good obligations of the vendor.

The new guidance

The new guidance requires that there is a current letting or agreement for letting for transfer of business to apply. If the property is vacant on sale then transfer of business may not apply and further analysis is required to determine if VAT is chargeable, the sale is exempt or if a joint option to tax the sale should be sought.

What questions do you have?

We are happy to help. Please post your comment below or call John Comerford, Tax Partner at Cooney Carey, on 01 677 9000. Alternatively, send him an email: jcomerford@cooneycarey.ie

Posted on September 4, 2018 by John Comerford

Blockchain part 5 of 6 – How Do I Implement my First Blockchain?

If you have read our previous blogs on Blockchain, you are probably now wondering what steps you and your business might undertake to incorporate Blockchain. Below are 6 steps to assist you in implementing Blockchain into your business:

Step 1. Deciding if Blockchain is applicable to your Industry

If you are uncertain how Blockchain can help your business, it can be useful to ask yourself the following questions:

  • Is my current system prone to errors due to manual input
  • Do I need to track transactions more efficiently.
  • Is my current system too complex.
  • Is my current system too costly.
  • Can a new network provide greater transparency.

If any of the above answers are applicable to your business, Blockchain is likely to benefit your business.

Step 2. Examining your Current Business Process

By placing your current business process under scrutiny – you will be able to identify inefficiencies or areas that are prone to delay.

Step 3. Determining How Blockchain Can Help

After identifying inefficiencies in your business process – the next step is to identify how Blockchain can alleviate these inefficiencies. For example, if a lack of trust is causing friction in your business. Blockchain can assist by providing a shared ledger, thereby increasing transparency.

Step 4. Is Blockchain Appropriate

Before implementing Blockchain you will need establish if it can provide real value, could the process be achieved by using an alternative system.

Step 5. Determining How Blockchain can Help You Achieve Your Goals

Ask yourself what you want to achieve by implementing Blockchain. How can your business measure how affective its initial implementation has been.

Step 6. Choosing the Appropriate Provider

Consider who would be your most appropriate Blockchain provider, it might be beneficial to consider the following:

  • Do you have frequent exchanges with the same individual, cold these exchanges be automated to free up time and money.
  • Do you require a permissioned network.
  • Do you need to know your clients, for example to adhere to KYC (Know your client) AML (anti money laundering legislation)

What questions do you have?

We are happy to help. Please post your comment below or call Colin O’Brien, Corporate Finance Director at Cooney Carey, on 01 677 9000. Alternatively, send him an email: cobrien@cooneycarey.ie

To keep in touch, connect with our friendly team on LinkedIn.

If you found this article interesting, please share it with other businesses. 

Posted on June 6, 2018 by Colin O'Brien

Blockchain part 4 of 6 – Blockchain in the Real World

The best ways to determine if Blockchain can help your business it to look at some real-world benefits. For example, it can provide to a range of businesses across the following separate and varied industries:

Insurance

  • Insurance providers need an efficient way to process claims. Blockchain can facilitate this by incorporating insurance claims and policy conditions into smart contracts stored on Blockchain. Once an insurance claim is made by a credible source, the insurance policy is automatically triggered.

Supply Chain Management

  • When something goes wrong in a complex system, for example an aircraft. It can be useful to implement supply chain management to establish the details of each component down to the date, batch and even the manufacturing machine. Blockchain can hold all these details.

Healthcare

  • Most hospital records are held in cloud like environment, making the data susceptible to data breaches leading to fines and damaging reputations. By incorporating greater granularities Blockchain can facilitate patients, doctor’s hospitals and insurers to maintain comprehensive medical history for every patient.

Financial Services

  • Commercial financing: Businesses need to purchase goods and services on credit – by implementing Blockchain and the process of sharing a ledged, there is complete visibility on all transactions and the potential for disputes is limited.
  • Trade finance: businesses need a way to expedite the process of moving goods across borders. Legal entities can sign all approvals on Blockchain, keeping all parties informed on the approval status.

What questions do you have?

We are happy to help. Please post your comment below or call Colin O’Brien, Corporate Finance Director at Cooney Carey, on 01 677 9000. Alternatively, send him an email: cobrien@cooneycarey.ie

To keep in touch, connect with our friendly team on LinkedIn.

If you found this article interesting, please share it with other businesses. 

Posted on May 30, 2018 by Colin O'Brien

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