No significant changes to VAT compliance obligations have occurred in recent years.
Under Irish VAT law, a charge is imposed on “taxable persons” who are established in Ireland for VAT purposes. A taxable person is a person who independently carries on a business – in the EU (including Ireland) or elsewhere. This definition includes a person who engages in activities that are exempt from VAT.
VAT is chargeable and payable on:
- Supplies for consideration of goods in Ireland by a taxable person
- Imports of goods into Ireland
- Supplies for consideration of services in Ireland by a taxable person
- Intra-Community acquisitions for consideration of goods by an accountable person in IrelandIntra-Community acquisitions for consideration of new motor vehicles and other new means of transport by all persons, whether accountable or otherwise
VAT is chargeable on goods and services. Goods include both movable and immovable objects, new and used. The registration thresholds are EUR 75,000 (goods) and EUR 37,500 (services). A party must register for VAT if turnover exceeds, or is likely to exceed, these amounts in any 12-month period. In certain circumstances, taxable persons may elect to register if their turnover is below these thresholds.
Foreign entities not established in Ireland must pay particular attention to the following:
- A non-established person (individual, corporate or other) must register for VAT if supplying goods or services in Ireland (no threshold applies)
- A person (individual, corporate or other) must register for VAT if the value of their intra-Community acquisitions exceeds EUR 41,000 in a 12-month period
- Businesses making distance sales of goods to private customers in Ireland must register if their turnover exceeds EUR 35,000 in a calendar year
VAT registered parties are subject to the following compliance duties:
VAT reporting is monthly, bi-monthly, bi-annual or annual, the filing frequency being set by Revenue. The return must be filed and paid on or before the 23rd day of the month following the return period if filed electronically with Revenue via “ROS”. VAT registered traders involved in the acquisition of goods and intra-Community supplies have additional reporting responsibilities as follows:
The VIES system applies to intra-EU trade only. VAT registered traders are required to submit periodic returns of their EU supplies. There is no threshold for VIES reporting. The return periods are at the discretion of Revenue and must be filed by the 23rd day of the month following the return period (if filed electronically).
Intrastat is a system for collecting statistics on the physical movement of goods (not services) between the Member States of the EU. If imports from other EU States exceed EUR 500,000 p.a. or exports to other Member States exceed EUR 635,000 p.a., detailed monthly Intrastat returns must be filed. The return must be filed on or before the 23rd day of the month following the return period (if filed electronically).