VAT Refunds

VAT Refund for Delegates

From July 1st, 2007, the VAT element of accommodation expenses incurred when attending a business conference in Ireland can now be claimed back by Taxable Businesses.

• What is Allowed?
• Are There Exclusions?
• Which Events Qualify?
• Claiming the Refund
• Who Else Can Help With VAT Refunds?

What is Allowed?

The deduction entitlements are related to cost incurred on accommodation only and do not include expenditure on food or drink or expenditure related to an exempt activity. In accordance with normal VAT rules, deductibility is allowed only where expenditure incurred is attributable to taxable supplies by a business.

‘Qualifying accommodation’ includes rooms in hotels, guesthouses or apartments which are let as part of the short-term guest or holiday sector – the definition stretches as far as caravan parks and camping sites!

Are There Exclusions?

Yes, the legislation currently only applies to conference-related accommodation. It does not extend to VAT incurred on meals or drinks, which remain non-deductible items.

The right to deduct VAT only applies to entities or individuals which are currently treated as taxable persons for VAT purposes. It does not extend to groups or organisations that are treated as VAT exempt or not in business.

Which Events Qualify?

Qualifying conferences include conferences or meetings organised for business purposes catering for a minimum of 50 people. Events catering for less than 50 people will not qualify, although a conference organised to cater for more than 50 which attracts less than that number should still qualify.

Any Irish or non-Irish taxable business entitled to recover VAT will be able to reclaim the VAT element of the accommodation expenses paid by them on behalf of their delegates. Individual delegates who are entitled to recover VAT, i.e. self-employed, attending a qualifying business meeting also qualify.

Non-Irish businesses will be entitled to claim Irish VAT to the same extent as a VAT registered Irish company.

A ‘qualifying delegate’ is any taxable person or a taxable person’s employee or agent who attends a qualifying conference in the course or furtherance of that person’s taxable business.

The allowance will apply from the night prior to the date on which the conference starts and end on the date on which the conference concludes. Where a delegate attends for only part of the duration of the conference, entitlement to deduct the VAT incurred on the accommodation should be reduced accordingly.

Proof Required

VAT refund can only be claimed on foot of a valid VAT invoice. The invoice should be addressed to the taxable person and not to the agent or the employee.

Claiming the Refund

Irish companies or qualifying individual delegates will be able to claim the VAT back in the normal way through their VAT returns.

Non-Irish companies/delegates can obtain refunds by applying to the Revenue Commissioners as follows:

· Businesses established in the EU – under the terms of the EU Eighth Directive, by submitting form VAT60EC to the Irish Revenue authorities

· Businesses established outside the EU – under the terms of the EU Thirteenth Directive, by submitting form VAT60OEC to the Irish Revenue authorities.

For more information on refunds from VAT incurred on accommodation in connection with attendance at qualifying conferences and for application forms and details on where to send the applicable forms, please click on The Irish Revenue Commissioners main site or the section dealing specifically with VAT.