The DCPL arises on the first supply of certain concrete products and is calculated at 5% of the open market value of:
- Masonry blocks; and
- Ready to pour concrete
A chargeable person is someone who makes a first supply of such products – a chargeable supply occurs when concrete products, within the scope of the levy, are:
- Sold by an Irish business;
- Transferred between related Irish companies; and
- Used by an Irish business or individual – this means that an Irish individual purchasing in-scope concrete products from Northern Ireland becomes a chargeable person for the purpose of the DCPL
Chargeable persons are obliged to register with Revenue, maintain relevant records, file DCPL returns and make the required tax payments.
Pay and File Obligations
Chargeable persons must submit a return and pay any levy within 23 days of the end of the accounting period.
The initial accounting period covers 1 September 2023 to 31 December 2023 – pay and file by 23 January 2024. Thereafter, accounting period will cover 6 month periods, the first such period commencing on 1 January 2024.
Precast Concrete
In October 2022, the then Minister for Finance indicated that precast concrete products would not be subject to the levy. However, Revenue Guidance issued on 27 July 2023 stated that ready to pour concrete used in the manufacture of precast concrete products would be subject to the levy.
Concrete industry groups strongly expressed their concern that this would leave precast concrete businesses in the Republic of Ireland at a distinct disadvantage when compared to competitor firms in Northern Ireland.
Businesses and individuals purchasing blocks and ready to pour concrete from the North would have to account for the levy. However, precast products purchased in Northern Ireland would not incur the DCPL.
Following dialogue between industry bodies and department officials, the intention is to exclude the value of ready to pour concrete used in precast products from the levy’s scope. Michael McGrath, the Minister for Finance, has announced that he intends to bring forward a legislative amendment to deal with how the DCPL affects the sale of precast concrete products.
This amendment will take effect in the forthcoming Finance Bill and will apply from 1 January 2024. A refund scheme will apply to the period from the levy’s implementation on 1 September until the end of 2023.
How Can Grant Thornton Help?
At Grant Thornton, our specialist tax team can assist you in relation to any aspect of the Defective Concrete Products Levy.
Contact us today to discuss your requirements.
