VAT return - Periodicity

You can opt for filing returns on a bi-yearly period [6-month period] provided your yearly [net] VAT liability is below € 3.000 or filing returns on a tri-annual basis [every four months] provided the yearly [net] VAT liability is between € 3.001 - € 14.400. Taxpayers with low turnover or who pay their VAT liability by monthly direct debit payment can file their VAT returns on an annual basis if approved by the Irish tax authorities.


Payment of VAT [Tip]

A taxpayer with bi-monthly VAT liability of up to € 50.000 may pay VAT by direct debit in monthly instalments. If a business is seasonal, you can vary the amounts paid each month to reflect cash flow. You should make sure that the amount of VAT paid by direct debit is sufficient to cover ongoing liabilities. Where necessary, you should adjust the direct debit amounts to ensure the payments are adequate. At the end of the year, if a shortfall arises, the balance should be included when submitting the end-of-year VAT return. Where insufficient amounts are paid by direct debit and, as a result, the balance is more than 20% of the annual liability for VAT, you will be liable to an interest charge backdated to the mid-point of the year.