TO DEDUCT OR NOT TO DEDUCT: VAT IS THE QUESTION
The Chelco VAT International Academy continues its series of high-level VAT educational events with physical presence, this time with a morning seminar focusing on the application and complexities of the Right to Deduct Value Added Tax (VAT).
Although we have addressed this topic in the past, we believe it is important enough to merit a revisit, either to refresh one’s knowledge or to acquire an understanding of the topic, if this will be your first time with us!
The Right to Deduct VAT is the single most important aspect of the VAT legislation. The deduction system is meant to relieve traders entirely of the burden of the VAT payable or paid in the course of all their economic activities, provided that such activities are themselves, in principle, subject to VAT. The European Court of Justice (ECJ) has ruled time and time again that the right to deduct is a fundamental right of the taxable person and cannot be limited. However, the increased complexities of the number and types of transactions that businesses undertake today can lead to errors in input VAT deductions, and disagreements with the VAT authorities, which can consequently become very costly for the taxable person. Having a solid understanding of the deduction system is therefore paramount. This seminar provides exactly this understanding.
The seminar will cover the following matters:
- An explanation of the provisions in the Cyprus VAT legislation and EU VAT Directive regarding the right of deduction;
- Understanding when, and during which stages of the economic life of a business, the right to deduct arises;
- Understanding which expenses are deductible and which are not;
- Understanding the methods of apportionment including;
- Understanding the pre pro-rata (non-economic activities)
- Understanding the pro-rata (exempt and non-business activities)
- Understanding deductions for certain financial transactions, including where the recipient of the service is outside of the EU and the related easement rules of how to determine whether certain financial transactions are placed within or outside of the EU;
- Understanding deductions for certain transactions undertaken by holding companies;
- Understanding when the initial deduction should be adjusted in future;
- Understanding the capital goods scheme deductions;
- Understanding how the right to deduct is affected when certain formal obligations have not been met;
- In all aspects of the seminar, where possible, we will analyse decisions of the European Court of Justice that emphasise the points made;
- Several examples will be presented and solved.
The seminar is open to any professional with exposure to VAT matters such as accountants, chief accountants, CFOs, financial controllers, tax advisors, et al.
Due to social distancing and Covid-19 health & safety restrictions and regulations applicable at the time, seats are limited!
Download the seminar brochure in English
Agenda
Welcome Address
Alexis Tsielepis – Instructor
- Importance of VAT deduction
- To whom is the supply made?
- Time of deduction
- ECJ Case law
- Basic deduction rules
- Specific rules in Cyprus
- Apportionment rules
Coffee Break
- De-minimis rule
- Deduction with no output transactions
- Capital Goods Scheme
- Holding companies
- Formalities
- Apportionment example
Discussion and Questions
End of Seminar
The Instructor
Alexis Tsielepis, BSc, FCA
Managing Director
Chelco VAT Ltd
E-mail: [email protected]
Alexis is widely considered as the foremost expert on VAT in Cyprus. With more than 15 years of experience in VAT strategic consulting, he advises businesses on international VAT matters and lectures at local and international VAT conferences.
Alexis possesses an extensive vocational and educational experience in European VAT and a detailed comprehension of EU VAT matters and decisions of the European Court of Justice (ECJ). He sits on various committees charged with tax matters, including the VAT Committee of ICPAC, on which he has held various positions, including Vice-President. His work includes liaising with the Cyprus tax authorities and government on policy making.
He has written a number of tax syllabuses, chapters and articles on matters pertaining to Cyprus and EU VAT. He is the author of the book “An in-depth analysis of the Fixed Establishment concept and a comparison with the Permanent Establishment concept”.
Alexis is a Fellow of the Institute of Chartered Accountants in England and Wales (ICAEW), and holds the Expert in European Value Added Tax Degree, which he earned with the highest grade ever awarded in the history of the coveted diploma. He is now a Partner and a Director of the VAT Forum and teaches at various international VAT schools.
Alexis is sharing his knowledge on VAT, in a series of seminars and workshops organised by the Chelco VAT International Academy, covering an array of VAT-dedicated topics.
Who Should Attend?
When, Where & How Much?
Limassol
Friday, 8 October 2021, Columbia Plaza Venue Centre
9:00am – 1:00pm (registration at 8:30am)
4 CPD Units (certificates of attendance will be provided)
€175 + VAT
Group Discount (for 3 persons or more): 15%
Due to Covid-19 restrictions, seats are limited!
English