IrelandManual

  1. VAT in Europe
  3. VAT in Ireland
  5. VAT returns in Ireland

VAT returns in Ireland

Frequency of VAT returns in Ireland

The standard frequency of filing of the periodic VAT returns is bi-monthly, commencing on the first day of January, March, May, July, September and November. However, tax authorities may authorize different reporting period depending on the annual turnover:

  • Bi-monthly 
    Standard reporting period
  • Quarterly
    If your annual VAT liability is between EUR 3,001 and EUR 14,400.
  • Bi-annual (every six months) 
    If your annual VAT liability is EUR 3,001 or less.
  • Annual return
    If you are making equal instalments by direct debit.
  • Monthly returns
    This is for taxable persons in a constant VAT refund position. Upon request and authorization from the tax authority.

In additional to the periodic reporting, taxpayers must also complete an additional recapitulative return on an annual basis: the Return of Trading Details (RTD). The RTD form details the total purchases and sales for the year, broken down by the VAT rate.

Find here the official information about reporting periods and deadlines in Ireland.

Due date of Irish VAT returns

The VAT return deadlines applicable in Ireland depend on the way of submission:

  • General deadline
    By the 19th day of the following month.
  • ROS filers
    By the 23th day of the following month.

Find here more information about the applicable deadlines.

VAT payments in Ireland

VAT payments in Ireland must be made electronically. There are several online methods available, although at Marosa we follow the ROS Direct debit instruction (RDI):

  • ROS Direct debit instruction.
  • Single debit instruction (SDI).
  • Direct Debit Instruction (DDI).
  • Credit and debit cards.

Have a look here, here and here at the information about how to pay taxes in Ireland. At Marosa we usually set up the direct debit method for our clients.

VAT Refunds in Ireland

The excess of input VAT is automatically and immediately refunded to the taxpayer. This is, when a taxable person declares more VAT deductible – e.g., due to purchases-, than VAT collected from sales, the difference is a VAT credit which shall be reimbursed to the taxpayer.

In order to correctly receive the VAT refund, it is important that the tax authorities have the right information about the taxpayer’s bank account.

Revenue must pay interest if a VAT refund has not been made after the expiry of 93 days from the date of receipt of a valid claim for repayment.

The refund may be withhold by the tax administration in case there is outstanding tax returns or debts.

Check here and here more details about VAT refunds. Also, you will find here more information about the interest that may be due in case of delays in refunding VAT.

Nil and Corrective VAT Returns in Ireland

A nil VAT return needs to be submitted even if there are no transactions to be reported for that period. 

Errors or omissions in a VAT return must be corrected, even if they do not impact on the VAT position for the corresponding period. You will need to submit a corrective return. The corrective VAT return replaces the previous return submitted for the same period in full. This means that the corrective return must include all details that were already correct in the original return as well as the corrected details. Additionally, if there is additional output VAT to be paid as a result of the correction, you should do it.

To amend a VAT3 return you need to proceed as if to file a new VAT3 and then click the 'Additional' button to see the list of reporting periods available for amendment.

When submitting a corrective VAT return, penalties and interest may apply.

In any case, the general deadline to make corrections on previous reporting periods is 4 years calculated from the accounting period or tax year which the tax concerns.

Find here and here the official instructions about making corrections to VAT returns.

Annual VAT returns in Ireland or RTD

Irish taxpayers must submit an annual VAT or annual Return of Trading Details (RTD). This is a recapitulative return for informative purposes, therefore, normally, there is no VAT payment due upon its submission.

The RTD form details the total purchases and sales for the year, broken down by the VAT rate. The amounts reported in the RTD must reconcile with the amounts reported in the periodic VAT returns submitted. The form is displayed in the company’s ROS inbox.

In case of no activity, a nil return with 0 in all boxes needs to be filed.

The usual deadline is the 23rd January of the following year. However, the deadline may vary depending on the taxpayer’s accounting period, or even registration date. You must check this deadline at the ROS account of the taxpayer. Learn more about RTD from the official website of the tax authorities.

VAT Penalties in Ireland

Interest is applied if you do not pay VAT on time. It is charged on a daily basis from the date the VAT payment is due until you pay the amount outstanding. The rate of interest is 0.0274% per day, or part of a day.

Additionally, penalties can arise if you do not pay VAT on time or you do not comply with your reporting obligations. Particularly, when it is appreciated a deliberate or careless behavior from the taxpayer. Fixed penalties are usually established at EUR 4,000.

In general, it is possible to perform a self-correction without penalty if the corrective return is submitted before the due date of Income Tax or Corporate Tax returns for the reporting period within which the VAT period ends.

Also, where a tax default is not deliberate and the taxpayer showed reasonable care in complying with the tax obligations assigned, a correction can be made without penalty. However, the statutory interest will apply. The following criteria is considered to avoid imposed a penalty for self-correcting a reporting period:

  • Whether the taxpayer has kept proper books and records,
  • The previous compliance record of the taxpayer,
  • The materiality of the error being corrected, and
  • The frequency of any error which, if it occurred in isolation, might be considered innocent

Separately, taxpayers can make use of the procedure Expression of doubt, by which the taxpayer raises a reasonable question about the correct VAT treatment of a particular transaction.

Finally, under certain circumstances, the tax authority may issue a VAT assessment or a VAT estimate:

  • You may also receive a VAT assessment where the tax authority have reason to believe that the taxpayer has not paid the correct amount of VAT, or has claimed an excess of VAT and has received this amount. In these cases, the Revenue sends a formal notice to the taxpayer.
  • You may receive a VAT estimate when you failed to submit your VAT return.

Irish Tax Authorities Contact

Intrastat returns

Taxpayers are encouraged to use the Myenquiries service option in ROS, selecting the categories “VIES, INTRASTAT and Mutual Assistance (VIMA)”.

Postal address

Personal Division. Service to Support Compliance. Branch 3

14/15 Upper O’Connell Street

Dublin 1

D01 YT32. Ireland

Customs contact

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