Developers to reap benefits of Revenue VAT rulings

IRISH property developers should receive an immediate positive cashflow effect due to two new rulings by the Revenue Commissioners.

As a result, developers can now let homes which were completed before July 1 this year but remain unsold, without incurring a heavy VAT liability.

“Until now, developers had been grappling with a full claw-back of all of the VAT recovered on the development of a house or apartment if that property was let,” according to Dara Burke, tax director at Cork-based tax consultancy, McAvoy & Associates.