If you have the time, we recommend you visit the Revenue Ireland (if located in Ireland) or your local Tax authority to find out more about VAT reporting requirements for international trade as these can be quite complex and will depend on the nature of your business as well as the nature of your Customer/Supplier (are they individuals or VAT registered entities?). Our recommended approach is that you first determine your requirements and then review them against our table below to get clarity on how your transactions should be entered.
The table below explains how your Ireland VAT Report is compiled and which Box is updated for each combination of VAT Treatment and VAT Type.
- VAT Treatment: This is specified when transactions are entered. Users should take particular care to select the correct option when entering Receive Money and Spend money transactions which are related to returns/refunds. For example if you are entering a General Receipt transaction to reflect a refund by a Supplier, then you should change the default from Goods or Services to Irish Customer to Goods or Services from Suppliers in Ireland. If you don't make the change, the system interprets the VAT as a Sale/Income (Output VAT) and may report this incorrectly. The same concept holds true for returns/refunds you provide your own Customers via a General Payment transaction.
- VAT Type: The VAT Code used in transactions has an underlying VAT Type. These can be reviewed by checking your organisation's Tax Rates settings.
- Invalid: This indicates that the combination is not allowed during transaction entry.
- ESL: Indicates whether the combination will be picked up by the EC Sales List.
- Standard VAT: The Box filled on the VAT Return for Irish organisation's using Standard VAT as set in VAT Status.
- Flat Rate VAT: The Box filled on the VAT Return for Irish organisation's using Flat Rate VAT as set in VAT Status.
- Cash Basis Special Rule: This impacts Irish organisation's which report VAT under the Cash Basis (when payment is made rather than invoices issued). For these combinations, Invoices and Credit Notes will appear on the VAT Return based on the Invoice or Credit Note transaction date regardless of whether they have been paid or not.
eFolio Accounts is fully compliant with processing Reverse Charge transactions. These are entered with the following combinations:
- Reverse Charge
- VAT Treatment = 23 - Services from EU Supplier and VAT Type = No VAT
|Date Effective From||Standard Rate (%)||Reduced Rate (%)||Second Reduced Rate (%)||Livestock Rate (%)||Flat-rate compensation percentage for Farmers (%)|
|1 January 2014||23||13.5||9||4.8||5|