Tax - Accountancy

Zebo2016 · 16-05-2019 9:59am #1

I am a vet in private practice and I’m planning on constructing a clinic on a green field site. Is it possible to claim back VAT on this construction, or to write it off as a business expense?

Regards,
Harry

namenotavailablE · 16-05-2019 4:40pm

Yes, a reclaim should be available but the "Capital Goods Scheme" is likely to apply which requires ongoing reviews of the use of the building and may entail later year adjustments.

There's a PDF file available here:

https://www.revenue.ie/en/tax-professionals/tdm/value-added-tax/part11-immovable-goods/capital-goods-scheme/capital-goods-scheme.pdf

Zebo2016 · 18-05-2019 8:53am

Thanks naenotavailal, I presume you mean I am reclaim the 13.5% but I can’t write off the total cost of construction as a business expense?

Thanks for your help

namenotavailablE · 18-05-2019 12:49pm

Yes- a VAT reclaim was what I was referring to. The cost of construction wouldn't qualify as a deductible expense.

Zebo2016 · 23-05-2019 12:06am

And one more question. If I put an extension on to my present building can I only claim the materials as expenses or can I claim back some of the builders fee?

barneystinson · 23-05-2019 5:45am

There’s no free lunch here. What you’re doing in either case here is constructing a new asset.

In accounting terms, the cost of constructing an asset is not an expense, the depreciation over time of the asset as it is used is an expense.

In tax terms, you don’t get a deduction/expense for either the cost of constructing your premises or the depreciation of the building.

barneystinson · 23-05-2019 1:59pm

Calahonda52 wrote: »

What about Capital Allowances?

https://www.revenue.ie/en/companies-and-charities/corporation-tax-for-companies/corporation-tax/capital-allowances-and-deductions.aspx

I thought that when doing the tax calc and reconciling the Accounting profit to the taxable profit, just for depreciation, that you added back the depreciation and subtracted the allowable CA for that year.

Maybe not for a vet or sole trader.... don't know

Not for a building, other than an industrial building as defined in section 268 TCA97, which a veterinary clinic would not fall within.

Zebo2016 · 25-05-2019 10:48pm

Thanks for all that help

1.Am I allowed to write off the metials (Tiles,Doors ect) as an expense?

2.Instead of building on a green field site if I add an extention to my present building can that work/construction be written off as a business expense?

barneystinson · 26-05-2019 8:31am

Zebo2016 wrote: »

Thanks for all that help

1.Am I allowed to write off the metials (Tiles,Doors ect) as an expense?

2.Instead of building on a green field site if I add an extention to my present building can that work/construction be written off as a business expense?

Do you have an accountant?
Have you asked them these questions?
What have they told you?

PS. I already answered your question a few posts ago.

Tax - Accountancy

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