Ireland Vat Services

Buckley Kiely & Co is a Cork based accounting and business consulting practice, focused on providing superior client service, technical expertise and a passion for the services we provide to clients internationally.

They serve a diverse portfolio of clients and industries, ranging in size from start-ups to multi-national organizations. Their services include Accounting, Audit, Tax Planning & Compliance, Business Solutions, and Independent Financial Advice.

The Buckley Kiely Business Support Team is made up of highly experienced, senior personnel with a range of relevant and extensive experience in a diverse range of industry sectors.

They understand that knowledge is everything and they help clients benefit from it by applying knowledge and expertise from relevant disciplines within the firm and tailoring it to the specific needs of the client. In this way they provide the value the clients deserve and the knowledge they need to succeed in today’s marketplace.

Their motto: “you do the business and we take care of your business” is a core belief of senior partners, Seamus Buckley and John Kiely, which is shared and supported by all members of the team.

Irish VAT

Value Added Tax (VAT) was introduced in the Republic of Ireland (“Ireland”) on 1 November 1972 by the Value Added Tax Act 1972. There have been several updated VAT Acts since then but the Irish VAT legislation was consolidated in 2010 into the Value Added Tax Consolidation Act 2010 (VATCA 2010). As part of this consolidation, all previous VAT Acts were repealed.

The principle pieces of legislation governing the value-added tax system are as follows:

Value-Added Tax Consolidation Act 2010 – VATCA

Value-Added Tax Regulations 2010 (SI 639 of 2010) – VAT Regulations

European Union (Value-Added Tax) Regulations 2010 (SI 612 of 2010) – VAT Regulations 2010

VAT RATES

There are currently 3 VAT rates in effect in the UK;

  • The standard rate of VAT (23%)
  • The reduced rate (13.50%), e.g. immovable property, labour intensive operations
  • The second reduced rate (9%) e.g. accommodation, restaurants, and certain cultural activities
  • Livestock rate (5.4%) e.g. Farm animals
  • The zero-rate (0%), e.g. books, oral medicines, children’s clothes and certain foods.

If a supply cannot be defined as being liable to the reduced or zero rates, or being exempt, it is by default a standard-rated supply (23%)

VAT REGISTRATION

The following persons are not obliged to register for VAT unless they otherwise elect:

(a)A farmer

(b)A person whose supplies of taxable goods or services consist exclusively of the following:

(i) supplies to accountable persons of unprocessed fish caught by him in a sea fishing business, or

(ii) supplies of the kind mentioned at (i) along with either or both of the following:

(1) supplies of machinery, plant or equipment which has been used by him in the course of a sea fishing business, and

(2) supplies of other goods and services the total consideration for which has not exceeded and is not likely to exceed €37,500 per annum.

(c) Persons whose receipts do not exceed €75,000 per annum, provided that 90% of their total receipts arises from the supply of taxable goods. This does not apply, however, in the case of persons supplying goods chargeable at the 23% rate where these goods were produced or manufactured by the accountable person wholly or mainly from materials chargeable at the zero rate.

(d)Persons whose receipts do not exceed €37,500 per annum and to whom (a), (b) or (c) do not apply. Where two or more persons, one of whom controls one or more of the others, supply goods or services of a similar nature, the total consideration for such supplies will be aggregated to determine if the €37,500 exemption limit is exceeded.

VAT COMPLIANCE

The Irish VAT legislation requires traders to keep certain records including; copies of all VAT invoices issued/received by the business, documentation relating to all imports and exports, documentation relating to all acquisitions and dispatches of goods; credit and debit notes and a VAT account. These records must be kept for a minimum of 6 years.

A registered person must provide their customer with a VAT invoice within 30 days of the tax point of the supply and should contain the following information;

  • Invoice number;
  • Date of supply;
  • Date invoice issued;
  • Supplier’s name, address and registration number. If the supply has been made to a customer in another EU member state, the registration number must be prefixed e.g. GB;
  • Recipient’s name, address and, if the recipient is another EU member state, it must show the recipients VAT registration number in that member state;
  • Description and quantity of goods/services;
  • Amount being charged;
  • Rate of VAT applicable;
  • Total amount being charged;
  • Rate of discount, if offered
  • A reference to any schemes used.

As well as the timely production of VAT invoice, as taxable person is expected to complete and submit a VAT return at the end of each VAT period. The VAT return should denote the VAT element of all transactions that fall within the scope of AT as well as any VAT relating to trade that takes place within the EU and tax on imported goods. An online VAT return must be submitted and paid within 23 days of the end of the month following the period end (for example, a March/April VAT return should be submitted and paid by 23 June.

Where a VAT return is submitted late or a payment of VAT is made late, the trader may be liable to an interest surcharge and an increased risk of Revenue Audit.

Intrastat and EC Sales Lists

Certain VAT-registered traders are required to complete the following returns and statements.

(i) Intrastat Return – to be completed monthly by any trader who imports more than €191,000 per annum from, or exports more than €635,000 per annum to, other EC Member States.

(ii) VIES – to be completed either quarterly or monthly by traders who export goods to a VAT-registered trader in another EC Member State. Effective from 1 January 2010 supplies of services must be included on VIES returns.

(iii) Upon request by an authorized officer an accountable person must give details to the Revenue Commissioners of any gifts or promotional items given in connection with taxable supplies and services.

©TRA – Tax Representative Alliance