Carne can assist funds and management companies with VAT compliance obligations as well as maximising recovery of VAT where possible.
For non-exempt services provided to funds and management companies by Irish-based providers (such as legal and audit fees), VAT is presently levied at 23% of the value of the services. This can create an additional cost unless a reclaim mechanism is put in place. For services from non-Irish providers invoiced without VAT, the fund or management company must self-account and pay for the VAT at an Irish rate, which may create additional costs.
How much VAT can be reclaimed?
The amount of VAT that can be reclaimed depends on the percentage of non-EU activity in the fund(s). This can be measured on a number of different bases, for example assets. A fund invested 100% in EU assets can recover 100% of VAT paid. A fund invested 50% in EU assets can recover 50% of VAT paid. There may be liabilities associated with 4th schedule services for funds that have EU assets or investors.
Carne can assist clients with VAT registration and management, performing an assessment of the VAT status of a management company, and determining VAT recovery rates, liabilities or reclaims. In addition we can register funds or management companies with the Irish Revenue, calculate and lodge regular VAT returns, and manage the VAT recovery process.
How does Carne assist its clients’ VAT registration and measurement?
- Perform an assessment of the VAT status of the fund or management company
- Determine VAT recovery rates, liabilities or reclaims
- Registration of the fund management company with the Irish Revenue
- Calculate and lodge regular VAT Returns
- Manage the VAT recovery process