Understanding the Defective Concrete Products Levy (DCPL) in Ireland

5.09.2023

The introduction of the Defective Concrete Products Levy (DCPL) marks a significant shift in the Irish construction industry. This levy, introduced in the Finance Act 2022, is designed to regulate the first supply of specific concrete products. Here’s a comprehensive breakdown of the DCPL and how it might impact your business.

What is the Defective Concrete Products Levy (DCPL)?

The DCPL is a levy introduced to oversee the first supply of certain concrete products in Ireland. It’s applied at a rate of 5% on the Open Market Value of the concrete product during their initial supply.

Key Aspects of the DCPL:

Origins: The DCPL was established in the Finance Act 2022, integrating Part 18E and Schedule 36 into the Taxes Consolidation Act 1997.

Implementation Date: The DCPL will be applicable to the first supply of specific concrete products from 1 September 2023 onwards.

Chargeability: The individual or business making the first supply of the concrete products under the levy’s purview becomes the chargeable entity. Subsequent supplies of the same concrete product are exempt from the levy.

Self-assessment: The levy operates on a self-assessment model. Typically, the chargeable entity must submit returns and remit the levy to Revenue bi-annually. For more insights, refer to the section on Accounting Periods.

Registration with Revenue for the Defective Concrete Products Levy (DCPL):

If you’re planning to supply a concrete product under the DCPL’s scope, you must register with Revenue prior to your first supply. Online registration will be available from 14 August 2023 via Revenue’s eRegistration service accessible through the Revenue Online Service (ROS). If you cease to supply, you should notify Revenue and consider de-registering.

Filing Returns and Payments:

As the chargeable entity for the DCPL, you’re obligated to:

• Electronically file returns via ROS or myAccount.
• Remit any levies due within an accounting period.

The initial accounting period for the DCPL spans from 1 September 2023 to 31 December 2023. Subsequent periods are bi-annual, such as 1 January 2024 to 30 June 2024 and 1 July 2024 to 31 December 2024. Returns and payments must be submitted to Revenue within 23 days post the accounting period’s conclusion.

Record-Keeping and Compliance:

Maintaining accurate records is crucial. Chargeable entities must retain documents detailing the levy amount, supply date, and the chargeable entity’s name. These records must be kept for a duration of six years from the accounting period’s end.

Penalties for Non-Compliance:

Non-compliance with the DCPL can result in penalties ranging from £500 to £4,000, depending on the nature of the breach. Additionally, unpaid levies accrue interest at a rate of 0.0219% daily.

Herbst ERP: Your Solution for DCPL Compliance

At Herbst Software, we understand the complexities businesses face with the introduction of the Defective Concrete Products Levy (DCPL). Our ERP system includes a dedicated module tailored to ensure your business remains compliant with the DCPL regulations. By integrating our solution, you can seamlessly manage, report, and remit your DCPL obligations.

Looking for a DCPL-compliant solution? Get in touch with us today and discover how Herbst Software can streamline your business processes in line with the new policy.

By ensuring your business is equipped with the right tools, like the Herbst ERP system, you can navigate the Defective Concrete Products Levy (DCPL) with confidence and ease.