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Ireland VAT country guide

VAT compliance and reporting rules in Ireland

Below is summary of the major rules provided under Irish VAT rules (Value Added Tax Consolidation Act 2010; Statutory instruments; Finance Act 2016), plus adoption of EU VAT Directive provisions. Check our country VAT guides for other jurisdictions.

Our VAT Calculator & VAT Filer products on a single platform, VAT Calc,  are unique in that they come with all of this included out-of-the box for Ireland and scores of other countries around the world.

Ireland VAT country guide

Highlights Local term Value Added Tax (VAT)
VAT Rates - standard 23%
VAT Rates - reduced 13.5%; 9%
VAT number format IE 1234567X; 1X23456X; or 1234567XX
Registration threshold Goods: €75,000 per annum. Services: €37,500 per annum. Nil for non-residents; €10,000 for pan-EU digital services and goods OSS return. Intra-community acquisitions €41,000
VAT Group Yes, voluntary
VAT recovery foreign businesses Yes, but requires reciprocity agreement for most non-EU businesses
Fiscal Representative Not required
Currency Euro €, January 1999
Administration Introduction VAT was introduced into Ireland in 1972 as a condition of its accession into the European Economic Community (now the EU) in 1973.
VAT laws Value Added Tax Consolidation Act 2010; Statutory instruments;  Finance Act 2016. Also EU VAT Directive which takes supremacy as part of EU membership
Tax Authorities Office of the Revenue Commissioners. Dublin branch for non-residents
VAT Rates Standard rate 23%
Reduced rates 13.5%: certain agriculture; electricity; hospitality in restaurants and café's; hotel and other overnight accommodation; repaid and cleaning.  9% hot drinks and takeaways; meals in cafes and restaurants; newspapers; eBooks and e-journals; sport event; hair salons; 
Zero-rated Intra-community passenger travel by air and sea; Exports and intra-community supplies of goods; gold to central banks; services related to vessels and aircraft; children's clothing; certain medicines; print books; foodstuffs
Exempt Education; financial services; health, hospital,  and social welfare; public postal; letting immovable property; betting and gambling; welfare services; international passenger transport
Scope of VAT Scope of VAT Provision of domestic taxable goods and services; EU imports; intra-community acquisitions; Distance selling of goods B2C (OSS or IOSS); receipt of services or goods via the reverse charge
Time of supply Goods & Services (general rule) The invoice date (or when it should have been issued). Advances or prepayments create a tax point for the amount paid only. Invoices not issued at time of payment are due at latest by 15th of the following month
Reverse Charge The earlier of the time of supply or the invoice.
Continuous  Services Date of payment or invoice, whichever is earlier
Imports Date of clearance into Ireland from customs
Goods on approval and return Taxpayers should follow the general time of supply rules.
Registration VAT registration threshold Goods: €75,000 per annum. Services: €37,500 per annum. Nil for non-residents; €10,000 for pan-EU digital services and goods OSS return. Intra-community acquisitions €41,000
Voluntary VAT registration Yes
VAT number format IE 1234567X; 1X23456X; or 1234567XX
VAT Group Yes, voluntary when two or more Irish-resident taxpayers meet the shared economic, control or financial objectives tests. The Irish Commissioners have to option to impose a Group VAT registration where the conditions are met. The group adopts just one VAT number, and intra-group invoices may ignore VAT. Members of the group share joint and several VAT liabilities. In certain conditions, non-residents may join an Irish VAT group. Pure holding companies without any taxable income may join a VAT group.
Non-residents Limited variations from resident business. But there is no registration threshold. There is no requirement for a fiscal representative if non-EU. If a non-resident only makes reverse charge supplies, it need not VAT register.
Fiscal Representative Not required for non-EU businesses seeking an Irish VAT registration. However, the Commissioners reserve the right to impose this in the case of a poor tax compliance record.
Digital Services Ireland  participates in the EU single One Stop Shop (OSS) VAT return for digital, telecoms and broadcast services. This was formerly the MOSS regime until 30 June 2021
Pre VAT registration costs Generally permitted for expenditure directly related to the purpose of the company
VAT Invoices Issuance At the tax point or at latest 15th for the month following the supply. Not required for B2C invoices, including transactions reported through OSS distance selling returns
Content Date; unique sequential invoice number; name and address of supplier and customer; Customer VAT number for intra-community supplies or reverse charge; date of supply or advance payment if different from invoice date; Description, quantity or units etc of supply of goods or services; price per unit; taxable amount; VAT charged; rate (broken out if supplies at different rates); total; explanation if zero-rated supply.
E-invoices Ireland e-invoice rules
Simplified invoices If not exceeding €100. Can exclude customer details. May not be used for intra-community supplies.
Self-billing Yes, if by mutual agreement of both parties. Clearly documented process required, in particular the acceptance of the invoice by the supplier
Retention of invoices Six years. Paper invoices should be held in Ireland. E-records do not need to be kept in Ireland; but should be easily accessible for the Commissioners. Digitisation of paper invoices permissible under strict controls.
FX rules Must include equivalent figure for VAT liability in €. The published rates of the European Central Bank or Central Bank of Ireland should be used
Invoice corrections Credit or debit notes must be used for adjustments to  VAT invoices. They should reference the original invoice, and provide an explanation for the adjustment.
Compliance Right to deduct Excluded: staff hospitality and accommodation. Entertaining expenses. Motor vehicle purchase, hire and petrol - 20% allowance for some vehicles.
Call-off stock Following the EU's 2020 Quick Fix harmonisation reforms, stock may be transferred from an EU state to an customer location/warehouse in Ireland without triggering a VAT registration and supply for a non-Irish supplier. Title has not passed until the customer takes the goods for production and sale. At which time a zero-rated transaction may be effected. This must happen within 12 months of the original movement
Reverse Charge - B2B Aside from the regular reverse charge on B2B imported services, there are also reverse charge obligations on other supplies: non-residents offering instal or estate agency; domestic supply of gas and electricity; carbon trading certificate domestic reverse charge; construction services; scrap metals; 
Cash discounts No credit note agree if both sides written agreement
Bad debt relief Yes, where debt is written off for financial accounting and all reasonable efforts made to recover the unpaid VAT. The recoverable VAT may be reported through the next VAT return as increased input VAT after six months.
Import VAT deferment Ireland postponed VAT accounting rules
VAT warehouse Approved customs and VAT warehousing (based on article 157 of the VAT Directive) enables importers to hold goods in certified locations prior to clearing them for any customs duties and import VAT. There are several levels in Ireland. This includes an inward processing regime, providing exemption from import VAT.
Supply & install The reverse charge should be used when a non-resident provides a supply & instal for goods service.
Use and enjoyment services The following services are deemed to be provided in Ireland by a non-resident to an Irish consumer: telecoms and broadcast; financial services; hire of moveable goods; money transfer service
Capital goods adjustment period Movable property: ten years. Immovable property: 20 years
Non-residents VAT recovery EU businesses may apply for Irish VAT reclaims through the electronic portal of the tax authorities of their company of residency (8th Directive). Quarterly claims above €400 permitted, with final claim above €50 by 30 Sept of following year.  Non-EU businesses must submit a paper-reclaim with supporting invoices via the Irish authorities directly (13th Directive). Ireland does require a reciprocal agreement with the country of residence of the claimant. Non-EU businesses do not have to appoint an Irish resident Fiscal Representative for the reclaim process
VAT on Digital Services Ireland  follows the EU VAT on digital services regime, introduced in 2015. This includes participation in the One-Stop-Shop (OSS) single EU VAT return (formerly MOSS until 30 June 2021)
Live events N/a
Distance selling threshold for goods Nil. Following the EU ecommerce VAT package reforms from 1 July 2021, local Irish VAT must be charged on all sales by non-Irish EU e-commerce sellers shipping from within the EU. Imported distance sales not exceeding €150 liable to Irish sales VAT with  IOSS return option
Cash accounting scheme Voluntary where turnover below €2million per annum or when over 90% of sales are to non-taxpayers (i.e. B2C)
VAT registered cash tills N/a
Statute of limitations Four years
Other VAT 56 Scheme: Frequent exporters in a perpetual credit position are given permission to receive Irish inputs on a zero-rating basis. Export or intra-community supplies should account for at least 75% of turnover per annum
VAT Returns Frequency Bi-monthly for the majority of businesses - starting Jan-Feb. Taxpayers in longstanding credit position may apply for monthly filings. Businesses with a turnover between €3,001 and €14,400 may file three times per year in four-month blocks. If below this limit, taxpayers may file annually only with monthly estimate instalments.
Filing method Electronic. Revenue Commissioners Online System - ROS
Deadlines (inc payments) 23rd of the month following the reporting period for (all) electronic filers
VAT credits Refunded automatically via VAT return - although may trigger VAT audit
Corrections Route to correct any over/under declared VAT depends on the nature and value of the error. May be: corrective return (most common); via next return; or voluntary disclosure.
Non-residents No difference for non-resident filers. No fiscal representative required.
Other filings Monthly European Sales Listing (termed 'VAT Information Exchange System (VIES) Return') for goods and services supplies without any threshold on a monthly basis. Due by 23rd of the following month of the reporting period. If revenues do not exceed €50,000 in any of last four quarters then may follow VAT return cycle. Intrastat monthly by the 23rd of the following month for supply of goods above threshold: dispatches: €635k; arrivals: €500k. Annual Return of Trading Details required with annual stats on VAT sales and purchases by VAT rate. This should be filed by 23rd of the month following the 12-month reporting period
SAF-T N/a
Penalties & interest €4,000 default fine for missed VAT return. 0.0274% daily interested charge on unpaid VAT liabilities with further €4,000 potential fine for long delay. Fines of €3,000 and €5,000 for careless or deliberate missdisclousure of VAT due, respectively. Interest can vary from 3% to 100%.
B2C Distance Selling returns Ireland participates in the One-Stop-Shop OSS pan-EU VAT return for distance selling, introduced in July 2021.

 

 

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