When VAT becomes payable

Updated on March 11, 2022

Overview

This section focuses on:

How to submit a VAT3 return when Valuation Tax (VAT) is due and how VAT is refunded.
Tax payments must be made by the 19th of the following month the end of accounting month. The Collector General should get a good and accurate return via Revenue Web Site (ROS).

The VAT3 return is a record of the VAT you owe or are entitled to claim for the time period covered by the return.

Your VAT refund must be issued straight to a bank account in the financial institution if the VAT return is repayable. However, if you owe tax, the Collector-General may withhold your repayments.

For each taxable period, firms must file and pay their V.A.T. on or before the 19th of the next month (VAT). Revenue Online Service shall provide the Collector General with an accurate and complete return (ROS).

The present date of the 19th of the monthly for VAT returns has been extended to the 23rd of the calendar for ROS filers.

Failure to pay you VAT on time could lead to fines and interest.

What are the taxable periods for VAT?

Taxable months are February, April, May, July, September, and November, which begin on the first of each month and end on the first of the next month. If the Collector-General so chooses, then the following tax periods are permissible:

if you pay your bill in equal monthly instalments via direct debit.
if your yearly VAT bill is somewhere between €3,001 and €14,400, you must file quarterly returns.
If your yearly liability is less than €3,000, you can expect six-monthly refunds.

What is the Return of Trading Details (RTD)?

An RTD form must be filled out each year to keep track of trading activity. The RTD form breaks all all purchases and sales by the VAT rate.

Your ROS mailbox will be flooded with it at the end of the year.

How do you complete a VAT3 return?

Taxes (VAT) must be paid or claimed throughout your tax period and is documented inside the VAT3 return. To finish the tax return, follow these steps:

tax form T1: sales-based value added tax

Your total VAT bill will be as follows:

goods and services for sale
acquisitions of products within the community
VAT Postponed Accounting services were provided to imports of commodities.

T2: Purchases subject to VAT

As a result of these costs, you are eligible to reclaim this amount of VAT.

things you buy in connection with the activities you’re taxed on or the supplies you’ve made.
Adding flat-rate service charges to intra-community purchases of products and imports of goods with VAT Postponed Accounting.
When a note is produced or received, the T1 and T2 amounts may be modified.

T3 – Tax due on goods and services

When the T1 figure exceeds the T2 figure, VAT is due to Revenue. The difference between the two numbers is the sum due.

T4 – Reimbursement for VAT

When the T2 figure is greater than the T1 figure, you are entitled to a refund of VAT. What’s owed is the difference between the two numbers.

At T1 through T4, the VAT3 must be recorded zero if there is no VAT payable or reclaimable in the tax period.

Note: Please do not use the nil character on any lines.

E1 – European Union trade in products

Customers in other European Union nations purchased goods at this price.

E2 — Trade within the European Union

To sum it up, that’s the total quantity of inventory received from vendors located outside the European Union.

Intra-European service supply
Services provided to customers in those other EU nations totaled this amount.

ES2 — Service acquisition within the European Union

You’re paying for services that were provided by vendors outside of the European Union.

Deferred accounting (PA1)
The total customs price of the goods imported under Postponed Accounting in accordance with Customs Proclamations plus customs duty is included in this figure.

For further information on your responsibilities with regard to electronic VAT returns and payments through ROS, please refer to the additional guidelines.

Repayment of VAT

A financial institution account must be set up to receive your VAT refund if your VAT return shows an eligible amount.

Taxpayers who owe money to the Collector-General may have their repayments withheld. If you owe back taxes, your repayments may be deducted from your total tax obligation.