ICAI, under the umbrella body of CCAB-I, made a submission to the Department of Finance on the proposed changes to the VAT treatment of property transactions.

The key concern surrounds the “90% rule”, which will bring about a very strange, and undesirable, result. It will mean that if an IFSC company rents a property it will have to pay a far larger disallowable VAT cost when signing the lease, than if it actually buys the same property. We have requested strongly that the ‘90% Rule’ be removed from the proposed changes.

A copy of our submission is available at Section 2.04.