-
Aviation Advisory
Our dedicated Aviation Advisory team bring best-in-class expertise across modelling, lease management, financial accounting and transaction execution as well as technical services completed by certified engineers.
-
Consulting
Our Consulting team guarantees quick turnarounds, lower partner-to-staff ratio than most and superior results delivered on a range of services.
-
Business Risk Services
Our Business Risk Services team deliver practical and pragmatic solutions that support clients in growing and protecting the inherent value of their businesses.
-
Deal Advisory
Our experienced Deal Advisory team has provided a range of transaction, valuation, deal advisory and restructuring services to clients for the past two decades.
-
Forensic Accounting
Our Forensic and Investigation Services team have targeted solutions to solve difficult challenges - making the difference between finding the truth or being left in the dark.
-
Financial Accounting and Advisory
Our FAAS team designs and implements creative solutions for organisations expanding into new markets or undertaking functional financial transformations.
-
Restructuring
Grant Thornton is Ireland’s leading provider of insolvency and corporate recovery solutions.
-
Risk Advisory
Our Risk Advisory team delivers innovative solutions and strategic insights for the Financial Services sector, addressing disruptive forces, regulatory changes, and emerging trends to enhance risk management and foster competitive advantage.
-
Sustainability Advisory
Our Sustainability Advisory team works with clients to accelerate their sustainability journey through innovative and pragmatic solutions.
-
Asset management Asset management of the futureIn today’s global asset management landscape, there is an almost constant onslaught of change and complexity. To combat such complex change, asset managers need a consolidated approach. Read our publication and find out more about what you can achieve by choosing to work with us.
-
Internal Audit Maintaining Compliance with New EU Pension Directive IORP IIOn 28 April 2021, the Irish Government transposed IORP II (Institution for Occupational Retirement Provision), an EU directive on the activities and supervision of pension schemes, into law.
-
Risk, Compliance and Professional Standards FRED 82 – Periodic Updates to FRS 100 – 105The concept of a new suite of standards for the UK and Ireland, aligning with international financial reporting standards, was first conceived in 2002
-
Audit and Assurance Auditor transition: how to achieve a smooth changeoverAppointing new auditors may seem like a daunting task that will be disruptive to your business and a drain on the finance function. Nevertheless, there are a multitude of reasons to consider a change, including simply seeking a ‘fresh look’ at the business.
-
Corporate Tax
Our Corporate Tax team is made up of more than 40 highly experienced senior partners and directors who work directly with a wide range of domestic and international clients; covering Corporation Tax, Company Secretarial, Employer Solutions, Global Mobility and Tax Incentives.
-
Financial Services Tax
The Grant Thornton team is made up of experts who are fully up to date in terms of changing and evolving tax legislation. This is combined with industry expertise and an in-depth knowledge of the evolving financial services regulatory landscape.
-
Indirect Tax Advisory & Compliance
Grant Thornton’s team of indirect tax specialists helps a range of clients across a variety of sectors including pharmaceuticals, financial services, construction and property and food to navigate these complexities.
-
International Tax
We develop close relationships with clients in order to gain a deep understanding of their businesses to ensure they make the right operational decisions. The wrong decision on how a company sells into a new market or establishes a new subsidiary can have major tax implications.
-
Private Client
Grant Thornton’s Private Client Services team can advise you on all areas of financial, pension, investment, succession and inheritance planning. We understand that each individual’s circumstances are different to the next and we tailor our services to suit your specific needs.
Is your business involved in both VAT exempt and VAT taxable activities with a 31 December accounting year end? If so, your annual VAT adjustment for 2019 is due to be submitted to Revenue on or before 23 July 2020.
Generally, businesses are entitled to full VAT recovery on costs solely attributable to their VAT taxable activities, no VAT recovery on costs solely attributable to their VAT exempt activities and partial VAT recovery on costs which relate to both VAT taxable and VAT exempt activities.
There are several methods used to calculate a partial general overhead VAT recovery rate including, turnover, staff usage, floor area etc. For example, a business that derives its turnover from 60% VAT taxable activities and 40% exempt activities will be entitled to recover 60% of the VAT incurred on its general overhead costs.
The turnover basis is the standard basis for calculating a partial general overhead VAT recovery rate. The turnover basis must be applied unless this basis does not “correctly reflect the use” of overhead costs nor does it have “due regard” to the range of activities and supplies undertaken by the business. Taxpayers should consider the turnover basis first and if it is not suitable, they should then consider other methodologies.
Where an “estimated” VAT recovery rate was applied throughout 2019 (usually the prior year 2018 rate), the actual VAT recovery rate for 2019 must now be calculated. Any resulting VAT adjustment arising should be made before 23 July 2020 (May June 2020 VAT return due date). If the actual rate for 2019 is less than the estimated rate used, failure to adjust by 23 July 2020 will result in a VAT exposure to interest and penalties. If the actual rate is higher, an additional VAT input credit may be taken.
This exercise applies to the financial services sector, e.g. banking, insurance/reinsurance, investment funds but also applies to those involved in a mix of VATable and exempt business activities, such as medical/healthcare, property letting, educational activities, local authorities, etc.
Methodologies and recovery rates used should now be reviewed, in particular, where the methodology applied has not been reviewed for a significant period, or where there have been changes in business activities, this will ensure the methodology currently applied remains appropriate.
If a business has recently commenced activities or is considering the VAT recovery position for the first time, Grant Thornton can advise on how best to approach this. Grant Thornton have assisted many clients over the years achieve very significant immediate and long term savings, as a result of carrying out annual VAT recovery rate methodology reviews. This is particularly pertinent in the current economic environment.
2019-2020 VAT Recovery Timeline