VAT OBLIGATIONS IN IRELAND
How is the tax period determined in Ireland?
Your company has to report its VAT position by filing periodical VAT returns on a two-monthly basis [2-month period - standard tax period]. Monthly reporting period can be opted for if your company is in a permanent repayment situation. Other tax periods are also available under specific conditions.
When should periodical VAT return be filed?
Periodical VAT return must be filed by electronic means via "ROS" to Irish VAT authorities before the 19th day of the month [19 of N+1] after the end of the tax period [monthly, bi-monthly, tri-annually, bi-annually or yearly] to which it relates.
If you both pay and file your return using ROS services the due date for your payment and return will be extended to the 23rd of the month following the tax period.
The tax period shall be set by each Member State at one month, two months or three months. Member States may, however, set different tax periods provided those ones do not exceed one year. The VAT return shall be submitted by a deadline to be determined by Member States. That deadline may not be more than two months after the end of each tax period.
Your company has to file a yearly Statement [Return of Trading Details - RTD]. The RDT Form details purchases and sales for the year, broken by VAT rate. The statement should be filed by electronic means via "ROS" together with the last VAT return of the year.
Member State may require taxable persons to submit a return in respect to all transactions carried out in the preceding year. That return shall provide all the information necessary for any adjustments.
Are quarterly filings allowed by the country and what is the filing deadline?
The recapitulative statement [ESL - VIES return] must be drawn up for each calendar month. Taxpayers can however opt for filing the statement on a quarterly basis provided the intra-EU transactions do not exceed a quarterly threshold of € 50.000. VIES Return must be filed by electronic means via "ROS" to Irish VAT authorities before the 23th day of the month following the reporting period [month/quarter] to which it relates.
The recapitulative statement shall be drawn up for each calendar month. However, Member States, in accordance with the conditions and limits which they may lay down, may allow taxable persons to submit the recapitulative statement on each calendar quarter where the total quarterly amount of intra-EU supplies of goods does not exceed either in respect of the quarter concerned or of any of the previous four quarters the sum of € 50.000 or its equivalent in national currency. The recapitulative statement shall be submitted within a period not exceeding one month.
What is the payment deadline?
The VAT due should be paid by filing deadline for the VAT return - no later than the 23rd day of the month after the end of the tax period to which it relates. Where VAT becomes payable but is not paid, simple interest is chargeable at the rate of 0,0274% per day, or part of a day during which the amount remains unpaid.
Are interim payments required?
Interim payments are not required in Ireland. However, taxpayers choosing to pay their VAT liability by way of direct debit instalments and filing annual VAT returns must pay monthly interim payments.
Any taxable person liable for the payment of the VAT must pay the net amount of the VAT when submitting the VAT return. Member States may, however, set a different date for payment of that amount. Member States may require interim payment to be made.
Is any VAT credit automatically carried forward or refunded?
A VAT credit is directly refunded about three weeks after filing the return. No carry-forward mechanism. Irish VAT Act provides for payment of interest on refunds of VAT to a claimant in two circumstances, i.e. when there is a mistaken assumption in the operation of the tax made by Irish VAT authorities or where there is a delay of more than 93 days in processing a fully completed claim. The rate of interest is 0,011% per day.
Where, for a given tax period, the amount of deductions exceeds the amount of VAT due, the Member States may, in accordance with conditions which they shall determine, either make a refund or carry the excess forward to the following period. However, Member States may refuse to refund or carry forward if the amount of excess is insignificant.