Solvency of the LAG and Implementing Partner Public-Private Partnership LAGs (i.e. LAG based on a partnership approach with financial and implementing partners) should seek a quarterly solvency declaration from their respective implementing partners. Similarly, LAGs constituted as separate legal entities must submit a Quarterly Declaration of Solvency (Appendix 5) to the Department. Tax Compliance VAT The default position is that all promoters are registered for VAT. In such circumstances VAT is not an eligible cost; non-recoverable VAT borne by promoters may be eligible. The LAG must obtain written confirmation from the Revenue Commissioners (provided by the promoter) that the promoter is not registered for VAT at the time of application and before each payment is made. Tax Clearance Procedures The LAG must be aware of the requirements vis-à-vis Tax Clearance procedures. These procedures are available at . These requirements apply in respect of the LAG, the Implementing Partner, the project applicants and promoters, suppliers of goods and services, and contractors, subject to the following requirements below – The LAG (or Financial Partner where appropriate) must be tax compliant. The Department will not issue any funding unless the LAG or Financial Partner produces evidence of tax clearance or a valid charity number to the Department; The LAG must notify project applicants and promoters of the tax clearance requirements relevant to them and their suppliers or contractors. The LAG must ensure that the tax affairs of project promoters and suppliers or contractors are in order. Payment must not be made if evidence of tax compliance cannot be provided on completion of work or at payment stage. Evidence of current Tax Clearance must be provided for payments that exceed €10,000 (including VAT) for the period of the project at the time of payment. This threshold is €650 for construction operations. Accordingly, the LAG must ensure that all promoters obtain evidence of valid and current Tax Clearance from all relevant suppliers and contractors. The LAG must not offer funding of less than €10,000 to avoid tax clearance procedures and to do so may result in cancellation of the Agreement.
Solvency of the LAG and Implementing Partner Public-Private Partnership LAGs (i.e. LAG based on a partnership approach with financial and implementing partners) should seek a quarterly solvency declaration from their respective implementing partners. Similarly, LAGs constituted as separate legal entities must submit a Quarterly Declaration of Solvency (Appendix 5) to the Department. Tax Compliance VAT The default position is that all promoters are registered for VAT. In such circumstances VAT is not an eligible cost; non-recoverable VAT borne by promoters may be eligible. The LAG must obtain written confirmation from the Revenue Commissioners (provided by the promoter) that the promoter is not registered for VAT at the time of application and before each payment is made. Tax Clearance Procedures The LAG must be aware of the requirements vis-à-vis Tax Clearance procedures. These procedures are available at . These requirements apply in respect of the LAG, the Implementing Partner, the project applicants and promoters, suppliers of goods and services, and contractors, subject to the following requirements below – The LAG (or Financial Partner where appropriate) must be tax compliant. The Department will not issue any funding unless the LAG or Financial Partner produces evidence of tax clearance or a valid charity number to the Department; The LAG must notify project applicants and promoters of the tax clearance requirements relevant to them and their suppliers or contractors. The LAG must ensure that the tax affairs of project promoters and suppliers or contractors are in order. Payment must not be made if evidence of tax compliance cannot be provided on completion of work or at payment stage. Evidence of current Tax Clearance must be provided for payments that exceed €10,000 (including VAT) for the period of the project at the time of payment. This threshold is €650 for construction operations. Accordingly, the LAG must ensure that all promoters obtain evidence of valid and current Tax Clearance from all relevant suppliers and contractors. The LAG must not offer funding of less than €10,000 to avoid tax clearance procedures and to do so may result in cancellation of the Agreement.