Value Added Tax Consolidation Act 2010 section 56

Zero-rating scheme for qualifying businesses

Section 56 establishes a zero-rating scheme that allows qualifying businesses, whose exports and intra-Community supplies account for 75 per cent or more of total turnover, to receive their business inputs at the zero rate of VAT.

• A qualifying person is an accountable person whose turnover from exports, intra-Community supplies and certain contract work amounts to 75 per cent or more of total annual turnover; an authorised person is a qualifying person who has received a written authorisation from Revenue to have purchases zero-rated.
• Qualifying goods cover all taxable goods except motor vehicles and petrol; qualifying services cover all taxable services except food, drink, accommodation, personal services, entertainment services and motor vehicle hire.
• Revenue will issue an authorisation where the applicant is a qualifying person, has completed Form VAT 56A, and there is no risk to revenue; the authorisation may be cancelled where the person ceases to qualify, has provided materially false particulars, or has failed to comply with ongoing conditions.
• An authorised person who receives a zero-rated supply of goods or services that would not normally be fully deductible must self-account for the VAT as though the supply had been made at the standard rate.