Complete Guide to Ireland VAT Invoice 2023: Stay Compliant

Are you a business personnel in Ireland, and are you an accountable person? If yes, issuing VAT invoice in a specific period, VAT invoice requirements, who should file VAT invoice, and when. These questions will be in your mind. In this guide, Ireland VAT invoice requirements, I’ll discuss each aspect of Ireland’s VAT invoice in great detail and address these questions.

Who is an accountable person?

An accountable person or individual is a taxable person. In simple words, a person who supplies goods and services in the Irish State Stat and who is registered for VAT or meets the VAT registration requirements and is required to register for VAT is an accountable person.

Irish VAT Invoice

An Irish VAT invoice or value-added tax invoice is a document that is issued by an accountable person. It contains details related to the taxable supplies. Moreover, the invoice has all the necessary information per the VAT law.

Importance of Ireland VAT Invoice

Ireland VAT invoice is the base to determine VAT liability or VAT responsibility on the supply of goods/products or services. In addition, it helps your VAT-registered customers in reclaiming the VAT that you charged them.

Issuing Date of A VAT Invoice

Issuing of a VAT invoice must take place

On the date of supply of goods
Or within the 15 days of the month in which products/goods or services took place.
You should keep the invoice for at least 6 years following the date of supply of goods or services. For example, if you issued a VAT invoice on the 15th of October 2021, you should keep a record of the invoice till the 15th of October 2027.

Who must issue the Ireland VAT invoice?

You’re an accountable person supplying goods or services to the following; you must issue Irish value-added tax invoice.

If you supply goods or services to another accountable person, you must issue a VAT invoice.
To a Department of State or a local authority, if you supply goods or services to them, you must issue a value-added tax invoice.
You must issue VAT invoice if you provide goods or services to a person engaging in an exempt activity, a person who is not a private entity, a person who is in another EU member state, or a person who is in another EU member state where the reverse charge to VAT is applicable.

Image: Who must issue the Ireland VAT invoice? — **Who must issue the Ireland VAT invoice?**

Who doesn’t have to issue Ireland VAT invoice?

A special set of rules apply to the supply of construction services, and the individuals lying in that position shouldn’t worry about the VAT invoice.

If you supply construction services to a sub-contractor registered for VAT in the State, you shouldn’t issue a VAT invoice to him.
Or there’s another condition if a sub-contractor supplies the construction services to the principal contractor, and the sub-contractor needs to be registered for VAT. It would be best if you didn’t issue a VAT invoice to them.

Irish VAT Invoice Requirements

The following are legal and valid VAT invoicing requirements in Ireland.

Date of issuance: The invoice’s date of issuanceshould be on the invoice.

Invoice Number: A unique invoice number or a unique sequential number.

Supplier’s Details: The address, name, and registration number of the supplier must be on the invoice.

Customer’s Details: The name and address of the customer must be on the invoice.

Customer’s VAT Number: Mention the customer’s VAT number if the invoice is for the reverse charge of supply and goods.

Intracommunity Trade: Mention the customer’s VAT number in case of intracommunity supply of goods. Mention it as an Intracommunity supply of goods on the invoice.

Goods and services Details: Do mention the quantity and nature of goods supplied and the extent and nature of the services rendered.

Description of Goods and Services: A full description of the goods/products should be mentioned on the VAT invoice.

Different Date of Supply: If the date of supply differs from the invoice date, mention it on the Ireland VAT invoice.

Price without VAT: Mention the unit’s VAT-exclusive price.

Net and Taxable Supply Value: Do mention the net and taxable value of the supply. Moreover, you can use our calculator to calculate the net and taxable supply value.

Discounts: Do mention the discounts or price reductions on the invoice.

VAT Rates: Mention the Vat rates on the invoice.

Gross amount: Mention the gross, total amount of the invoice.

Currency: The currency in which the payment is conducted should be mentioned on the VAT invoice.

Payment Terms: The payment terms and methods accepted by the seller should be outlined.

Margin Scheme or Special Scheme: For auctioneers, when the margin scheme or special scheme applies to the supply of goods, the amount payable shouldn’t be mentioned on the invoice.

The invoice concerning the margin scheme should be noted as the margin scheme – second-hand goods, and the invoice concerning the auctioneer’s scheme should be mentioned as the margin scheme – auction goods.

Infographic: Ireland VAT Invoicing Requirements — **Ireland VAT Invoicing Requirements**

Irish VAT invoice Template

You can create an Irish VAT invoice with an Irish VAT invoice generator. You should upload your company’s logo, supplier’s and customers’ details, and all other necessary information.

Change in VAT Invoice

You can modify the VAT invoice if its information needs to be updated. If you raise the price of an item, you must submit a supplementary invoice that includes the price increase; it must be VAT exclusive, the applicable VAT rates, the amount of VAT at each rate, and a cross-reference to other invoice issued in connection with that supply.

If you reduce the price on the initial invoice, you should send a credit note to the customer to reflect the price reduction.

FAQs

A VAT invoice is issued by the accountable individual in the form of a document to different accountable individuals. In contrast, VAT receipts are general receipts issued to other persons.

If your business is VAT registered, you must mention the VAT number on the invoice. There’re some exceptions for invoice without a VAT number, like dealing with second-hand items, engaging in margin schemes, or dealing with zero-rated items. Generally, mention your VAT Number on the invoice; it’s a best practice.

As per Irish Revenue requirements, VAT invoice and records should be kept for at least 6 years.

Late payment penalties and interest charges may apply if the VAT payment deadline is missed. To avoid these repercussions, payments must be submitted on time.

Conclusion

Understanding Ireland’s VAT invoice requirements is fundamental for businesses conducting transactions in the country. Complying with these regulations ensures smooth operations, minimizes risks, and facilitates accurate tax reporting.

In this article, Ireland VAT invoice, I’ve addressed topics like what is VAT invoice, who is accountable person, who should issue a VAT invoice or not, Irish VAT invoicing requirements, and more. If you still have any queries, contact us.