Updated on April 13, 2022
When goods and services are sold, Value-Added Tax (VAT) is imposed.
VAT is due on the following dates even if an invoice is not required:
when the supply was first produced
When any advance payment is made for the supply.
The VAT rate is determined by the following:
when the goods were delivered
the receipt date of an advance payment.
when an invoice is issued, VAT is owed at the earlier of:
how long it takes for you to get paid
you have not issued the invoice, this is when you should have issued the invoice
The VAT rate that is now in effect is known as the VAT rate.
as soon as the bill is sent out
In the time period when you should have sent the invoice
There is a wealth of information about when you must pay VAT to Revenue. Sections on when VAT is due and how to account for it on money received are included in this guide.
A few exceptions to VAT are listed here:
In most cases, VAT is required at the time of the invoice’s issuance for purchases made within the EU. Although the items are delivered in the month in which VAT is due, VAT is due no later than the 15th day of the following month.
Purchases of new motor vehicles made within the EU by anyone other than those eligible for VAT deductions are subject to VAT. In most cases, it is due at the time of registering a vehicle (VRT). VAT must be paid by the 15th of the month after the ICA if there is no VRT due.
When a utility firm sends a bill to a consumer for services such as gas, electricity, or telecommunications, VAT is required. If the utility company sends out a bill at least once every three months, this is acceptable. The rate that will be applied to the customer’s bill is the rate that was in effect at the time the bill was issued. This holds true even if the buyers have paid in advance.
Other from those qualified to deductibility, ICA’s of new planes and boats are subject to VAT. Upon arrival in the state, it is due within three days. The Collector of Customs and Excise is responsible for collecting the VAT.
Goods imported from non-EU nations are subject to VAT at the time they enter the country.
For excisable items, the date of the ICA’s due date is used to calculate VAT. Alcohol products have their own set of rules and regulations.
As soon as a duty suspension arrangement ends and the products are no longer exempt from VAT, they must be paid for.
Under the reverse charge procedure, those who must account for VAT on services received must do so by referring to the earlier of:
must be precise, when it’s dated
the date of the transaction
day that follows the month in which a service is rendered, usually the 15th.
How to account for VAT
In the next paragraphs, we’ll discuss:
when VAT (Value Added Tax) is due
how to fill out a VAT 3 tax form
ways to get your VAT back.
The 19th day of the month following the end of each period is the deadline for filing and paying VAT. This must be a legitimate and accurate tax return submitted via Revenue Online Service to the Collector General (ROS).
The VAT3 form is used to keep track of the amount of VAT you owe or can claim throughout your taxable period.
If you have a reimbursable VAT return, you must have the reimbursable VAT returned to a bank account. Nevertheless, the Collector-General may withhold your repayments if you have unfiled tax returns.
When VAT becomes payable
By the 19th day of the month after the end of each taxable period, you must file and pay your Value-Added Tax (VAT). This must be a legitimate and accurate tax return submitted via Revenue Online Service to the Collector General (ROS).
VAT returns must be filed no later than the 23rd day of the month for ROS filers, a change from the previous deadline of the 19th day.
If you don’t pay your VAT on time, you could be subject to interest and penalties.
What are the taxable periods for VAT?
On the first day of January, March, May, July, September and November, the taxable period is a two-month term (bi-monthly). It is possible that the Collector-General will grant an exemption for the following tax periods:
If you’re paying in equal monthly instalments by direct debit, you must file an annual tax return.
If your yearly VAT due is between €3,001 and €14,400, you must file quarterly returns.
If your yearly responsibility is less than €3,000, you will receive six-monthly returns.
What is the Return of Trading Details (RTD)?
Annually, you must fill out a Return of Trading Information (RTD) form. The RTD form provides a breakdown of annual purchases and sales based on the applicable VAT rate.
It will be presented in your ROS mailbox at the end of the year when the RTD is completed.
How do you complete a VAT 3 return?
The VAT 3 return is used to record any VAT paid or reclaimed during your tax period. Fill out the following areas of the tax form:
Return of Sales Tax, Form T1
You must pay this amount of VAT on your:
Purchases of goods and services from the community
Products that have been taxed and imported The necessary services have been provided to Postponed Accounting.
As a result of these costs, you are entitled to a refund of the VAT you paid on your purchases.
Items and services you offer as part of your taxable supply and eligible activities.
When VAT Postponed Accounting was implemented, flat-rate services were added to intra-Community purchases of goods imports.
T1 and T2 amounts may be changed when a credit note is issued or received.
VAT due on tax form T3
VAT is due to Revenue if the T1 amount exceeds the T2 figure. Difference between the two amounts is the debt.
Exemption from VAT recoupment
If T2 exceeds T1, you are eligible for a VAT refund. Amounts that must be repaid are shown in the difference between the two values.
VAT 3 must be zeroed out in the case that there is no VAT that can be reclaimed or paid.
Never, ever use the ‘nil’ character in your code.
EU-made products are referred to as E1 (intra-EU products).
Products have been purchased by customers in various EU countries totaling this sum.
E2 – European Union trade.
This statistic includes all purchases made from EU merchants.
As far as I know, only EU-based services are counted here.
Acquisition of EU-based services
This total sum includes payments received from EU suppliers.
PA1 – Financial reporting that is more than one month late
The total cost of items imported by an importer, including customs duty and any monies disclosed under Postponed Accounting, is displayed here.
Please refer to the supplemental guidelines for more information on your responsibilities with regard to ROS electronic VAT returns and payments.
Repayment of VAT
A financial institution account must be set up to receive your VAT refund if your VAT return shows an eligible amount.
If you owe taxes, the Collector-General may withhold any or all of your repayments. If you haven’t paid all of your taxes, you may be able to deduct repayments from your tax bill.