knowledge | 3 February 2020
Tax Appeals Commission Determination on VAT Refund for Roaming Fees outside the EU
A recent determination of the Tax Appeals Commission (“TAC”) concluded that the appellant was entitled to a €2.2 million refund of VAT charged on roaming fees outside the EU in respect of both ‘pre-pay’ and ‘bill-pay’ customers.
Section 104(2) of the Value-Added Tax Consolidation Act 2010 (“VATCA”) provided for an entitlement to a refund of VAT charged by a supplier where they sold a telephone card in Ireland and it was subsequently used outside the EU. While the Revenue Commissioners have always accepted that the entitlement to this refund applied in respect of ‘pre-pay’ customers, as a consequence of this determination, telecommunications companies may be entitled to a refund of VAT charged to bill pay customers who used roaming services outside the EU.
Section 104(2) of VATCA was, however, repealed with effect from 1 January 2019. Nonetheless, as a claim for a refund for overpayment of VAT can be made within 4 years after the end of the taxable period to which the claim relates, until 29 February 2020 telecommunications companies may be entitled to a VAT refund for the taxable periods during the years 2016 to 2018 inclusive. As VAT returns are generally filed on a bi-monthly basis, from 1 March 2020 the right to reclaim with respect to the taxable period ended 29 February 2016 will have expired.
The full text of the TAC determination is available below.Download PDF
This briefing is for general guidance only and should not be regarded as a substitute for professional advice. Such advice should always be taken before acting on any of the matters discussed.