ADS advices

Assets are resources controlled by a company that provide or are expected to provide economic benefits in the future. In accounting, assets are divided into current (short-term) and non-current (long-term) based on their nature and useful life. Below, we explore their classification, write-off rules, depreciation methods, and tax benefits available in Ireland.

1. Asset Classification

In Ireland, tax obligations apply to various categories, including self-employed individuals, owners of significant company shareholdings, and landlords. It is important to understand all nuances that can affect tax liability, reporting requirements, and potential tax reliefs.

Self-Employed Individuals:

Under Irish VAT legislation, the “Margin Scheme” aims to simplify and reduce the administrative burden and potential double taxation for dealers in second-hand goods, works of art, antiques, and collectibles. Instead of accounting for VAT on the full sales price of goods, the scheme allows VAT to be paid only on the difference (or margin) between the sales and purchase prices. This approach prevents dealers from facing VAT charges on the full value of items they resell, especially when VAT may have already been paid by a previous owner or in a prior transaction.

Categories Covered by the Margin Scheme: