Public Sector Requirements

Tax Clearance Certificates

  • Suppliers are obliged to produce a valid Tax Clearance Certificate where the cumulative value of purchases exceeds €10,000 euro. 
  • It is incumbent on each budget holder to ensure that the prospective supplier holds a current  Tax Clearance Certificate before placing the order. 
  • Where a supplier fails to comply with tax clearance procedures  the Late Payments in Commercial Transactions Regulations 2002 will not apply. 
  • National University of Ireland Maynooth -  Tax Clearance Certificate 2014

Late Payments in Commercial Transactions Regulations 2002

  • The University has 30 days from the date of receipt of an invoice to pay the supplier. If the invoice is not paid within this time frame interest will accrue. 
  • In a case of a dispute, written evidence must be kept for audit purposes. An email from the department outlining the dispute can be saved to JDE.
  • Departments should ensure that all purchase orders raised are receipted as soon as the goods/services have been supplied.
  • For further information, http://www.enterprise.gov.ie/en/FAQs/

Withholding Tax

  • Chapter 1, Part 18 of the Taxes Consolidation Act 1997 provides for withholding tax  to be deducted from payments made by public bodies in respect of professional services. 
  • As a general rule, the tax will apply at a current rate of 20% to all professional and consultancy services provided to the University. 
  • The tax applies on a world wide basis. 
  • Production of a tax clearance certificate does remove the requirement to deduct  tax. 
  • A ePSWT notification is made to Revenue as part of the payment run. Irish Suppliers can access this notification on Revenue Website. Foreign Suppliers will be emailed a PDF of the notification along with a remittance advice.
  • For further details please read Revenue Guide to Professional Services Withholding Tax (PSWT)