Updated on April 2, 2022
This section begins with:
an explanation of what a VAT invoice is
Who is required to provide a VAT invoice, what information must be included on a VAT invoice, how to alter a VAT invoice, and other varieties of VAT invoices.
What is a VAT invoice?
An invoice for value-added tax (VAT) is a document issued by a person who is legally responsible for it. All the information required by VAT law is included in a VAT invoice, including the specifics of the taxable supply.
After the end of the month in which goods or services are provided, a VAT invoice must be issued within fifteen days.
Why are VAT invoices important?
When determining your VAT responsibility for the supply of goods or services, the data provided on a VAT invoice is used as a starting point.
Additionally, it allows your VAT-registered consumers to reclaim the VAT they have paid to your business.
Who must issue a VAT invoice?
When supplying taxable goods or services, the responsible party must provide a Value-Added Tax (VAT) invoice to any of the following parties:
another individual who is responsible
Persons other than private individuals in another EU Member State who carry on an exempt activity in that Member State where a reverse charge to VAT applies, such as a Department of State, a local authority, or a statutory body In this case, the client is responsible for paying VAT in the other Member State where the supply was made.
Who does not have to issue a VAT invoice?
Construction services provided by: are subject to additional regulations.
either a VAT-registered subcontractor or a non-registered subcontractor providing services to a main contractor.
After that, what are the requirements for a VAT invoice?
What information is required on a VAT invoice?
Value-added tax invoices must include the following information:
how long ago it was published
a sequence of numbers that cannot be compared to any other
information about the supplier’s legal business name, address, and licence number
If a reverse charge applies, the customer’s entire name and address should be included, as well as the customer’s VAT number. In the case of construction services, this does not apply.
Triangulation simplification should be explicitly referenced in the case of intra-Community supply of goods, as well as an indication that the person in receipt of the goods is responsible for the VAT owed on the supply in the case of triangulation.
the kind and quantity of the products and services provided, as well as the VAT-exempt unit price
tax-exempt money received
decreases in the cost of goods
breakdown of VAT rates by country
how much tax is owed on the goods or services provided
in the case where an early payment is made prior to completion of the supply, this date is known as the date of payment on account. This only applies if the invoice date, the tax representative’s full name and address, and the VAT number issued by the member state are different. This is the situation in which a tax representative in another EU country is required to pay VAT.
VAT invoices where the reverse charge applies
An invoice is not generated if VAT is accounted for in accordance with the return charge procedure for goods or services that are being sold.
VAT invoices where the special schemes apply
Invoices produced for supplies of goods made under the margin or auctioneers’ special plan are exempt from include any applicable VAT.
‘Margin scheme — second-hand goods’ should be written on the invoice in respect to the scheme.
The invoice should be endorsed as follows: ‘Margin scheme — auction goods’ in regard to the auctioneer’s scheme.
Foreign currency on a VAT invoice
The Euro equivalent data must be included on an invoice issued in a foreign currency.
Use the Central Bank’s selling rate for that day when entering an invoice.
You can use a different method to calculate the exchange rate if you get authorization from Revenue. All of your foreign currency exchanges must be made via the agreed-upon manner.
In your application to your local Revenue Office, you should specify the method you intend to use for determining the currency conversion rate.
Can you amend a VAT invoice?
If the VAT amount or the VAT rate is found to be wrong, you can make modifications to your invoice.
Incorrect price on the invoice
You must send a supplementary invoice if the original invoice shows an increase in price:
a cross-reference to other invoices issued in relation to that supply is applied to the increase in the price (VAT exclusive) of the rates of VAT.
If you lower the initial invoice price, you must provide your customer with a credit note for the difference.
Incorrect rate of VAT on the invoice
Even if the VAT amount on your VAT invoice is higher than it should be, you are still accountable for the difference. You must submit a credit note and a new invoice in order to rectify the situation.
Credit notes must be issued for the entire invoice if VAT has been understated on your VAT invoice. Afterward, a new invoice must be produced to reflect the correct VAT.
Other types of VAT invoices
There are a variety of other invoice kinds, including:
batch invoicing and summary invoicing were simplified by electronic invoicing batch.
An electronic invoice or equivalent document may be issued in some instances, if certain conditions are met.
Before electronic invoices or other documents can be sent, both parties must agree. All of these functions must be supported by this system.
Ensure that electronic records and messages are kept and made available to Revenue upon request in the format and with the information necessary for Value-Added Tax (VAT) purposes.
The common details can be recorded once each transmission if you are sending a large number of invoices to one customer.
When can a simplified invoice be issued?
It’s possible to create a single invoice that includes all of the following:
Commercial, technological, or administrative procedures in a particular company sector make it difficult to meet the standard invoicing requirements of the industry.
What details should be included on a simplified invoice?
The simplified invoice should include the following:
the date of issue
the full name, address and registration number of the supplier
a description of the goods or services supplied
the tax payable or the price exclusive of tax.
When can you not use a simplified invoice?
Intra-Community goods and services cannot be invoiced using a simple invoice.
In the event that you make many deliveries to the same customer in the same month, you have the option of issuing a single invoice.