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Ireland VAT with Oracle E-Business Tax (EBTax)

by | May 11, 2018 | EU, Oracle EBTax, VAT/GST

VAT has been around in Ireland now since 1971 and started, as many tax schemes do, with pretty low rates.  Currently however it is all the way up at 23% (while still at the same level as other high rate countries like Hungry, Norway or Sweden)

Tax Authority:  Ireland – Tax and Customs Administration

Tax Rates: Standard (23%), Exempt, Zero and Reduced

Tax Recovery Rates:  100%, 0%

Setting VAT in Oracle E-Business Tax (EBTax) for Ireland is a relatively straightforward exercise and essentially comes with few surprises. Just as with all VAT regimes attention to how a company leverages their product categories is how precision can be achieved.  Some firms leverage Intended Use and some firms simply go with Tax Classification Codes.

Your Setup is NOT Wrong if it Works

None of these uses or lack thereof are wrong. It really comes down to how each company can organize there process in a manner that fits it company personality. So often I see firms telling companies that they are “wrong” or have a bad configuration. This type of “We know better than you are anyone for that matter” attitude usually comes off rather condescending.

If your Tax configuration calculates the correct tax and is effective within the boundaries of what your company is comfortable with then there is no “better” way.

I think often times folks try to get consulting gigs by simply saying that the other guys are wrong and “we” know better so hire us. It is just such an offensive turn-off for many firms to be approached this way. What if a company has 20 configured Regimes that are all configured in a sub-optimal manner? What is more important maintaining consistency or configuring the next regime completely differently (but optimal)? What degree of confusion does having inconsistent configurations cause and how can this be quantified?   So wrong how? Different and sub-optimal at what level? I have seen many configurations in so many companies that have been done in what “I” would consider sub-optimal but yet these same configurations work.   The whole idea of not hiring only unicorns is sub-optimal but at what level?

The Infographic below shows a baseline configuration for Ireland and by no means is intended to be a fully inclusive example.

Also, check out the following related articles:

 

Disclaimer: Sample Tax Set Up

• The following provides a sample tax set up, giving an example of how Oracle Tax could be configured

• It cannot be relied upon as ‘turnkey’ tax content solution.

• While it may serve as an initial implementation foundation or for educational purposes, businesses must determine if there are specific tax requirements for their business or industry

ConceptConventionReference
Regime[CT] [TAX TYPE] IE VAT
Tax[CT] [TAX TYPE] IE VAT
IE VAT OFFSET
Status[CT] [STATUS]IE STANDARD
IE REDUCED
IE ZERO
IE EXEMPT
IE OUT OF SCOPE
Jurisdiction[CT] ["JURISDICTON"]IE JURISDICTION
Recovery[CT] [RECOVERY RATE]IE 100% RECOVERY
IE 0% RECOVERY
Rates[CT] [RATES]IE STANDARD
IE REDUCED
IE ZERO
IE EXEMPT
IE OUT OF SCOPE
Rules[CT] [RULE]Place of Supply
Applicability
Registration
Status
TCC direct
Product Category Based
Reverse Charge
P2PO2C
IE_AP_STANDARDIE_AR_STANDARD
IE_AP_ZEROIE_AR_ZERO
IE_AP_REDUCEDIE_AR_REDUCED
IE_AP_EXEMPTIE_AR_EXEMPT
IE_AP_OUT_OF_SCOPEIE_AR_OUT_OF_SCOPE
IE_AP_REVERSE_CHARGE

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