Tax & Legal

The finance ministry has decreed that the reverse charge on trade sales of mobile phones applies to any mobile device capable of giving its output as an audible signal.

The Supreme Tax Court has held the payment of an "equipment bonus" to a mobile phone agent to be a payment by a third-party for a taxable sale to the customer.

The Supreme Tax Court has confirmed its earlier case law to the effect that the discount given on the sale of a mobile phone with a two-year service contract is to be capitalised as a prepaid expense.

The finance ministry has amended its VAT Implementation Decree in the light of the new reverse charge on wholesale sales of mobile phones and integrated circuits.

From July 1, 2011 the VAT on B2B sales of mobile phones and integrated circuits is payable by the customer where the consideration is at least €5,000.