Invoicing in Ireland
Under the Irish VAT system, taxpayers are required to provide invoices as evidence to support their claims for input VAT deductions.
In Ireland, businesses that are registered for VAT are obligated to issue VAT invoices for all taxable supplies made to customers who are also registered for VAT. Additionally, they must provide VAT invoices to specific parties such as public bodies, persons engaged in exempt activities, and individuals or entities in other EU Member States who are subject to reverse charge mechanisms in their home countries.
Learn more about Irish Invoice requirements in our comprehensive guide.
Full VAT invoice
There are several exceptions to the general necessity to present a valid VAT invoice, such as VAT free supplies and deliveries to a private consumer. Furthermore, there are several situations in which a supplier should not submit a valid VAT invoice, such as when the supplier is not VAT registered or when deliveries are made under certain special margin schemes.
Failure to issue an invoice under Section 115 of the VAT Act can result in a fixed penalty of EUR 4.000 for a registered supplier.
Full VAT invoice
- Date of issue.
- Unique sequential number which identifies the invoice.
- For a reverse charge supply, the VAT identification number of the person to whom the supply was made and an indication that a reverse charge applies.
- Supplier’s full name & address.
- Supplier’s VAT number.
- Customer’s full name & address.
- Customer’s VAT numbers – for supply other than reverse charge supply.
- Description of quantity & type of goods supplied or type & extent of services rendered.
- Date of transaction or payment (if different from invoice date).
- VAT rate applied.
- VAT amount payable.
- Unit price of goods or services – exclusive of tax, discounts, or rebates (unless included in the unit price).
- If a tax representative is liable to pay the VAT in another Member State, the full name, address, and VAT identification number of that representative.
EU rules provide EU countries with the freedom to make national decisions. The EU Commission publishes the precise provisions adopted by each EU country on their website.
Within six months, invoices must be issued. Invoices for intra-community supplies and reverse chargeable services rendered by taxable individuals located in the EU must be issued within 15 days of the month in which the goods or services were rendered.
Selling in Ireland?
Electronic Invoicing in Ireland
According to Sections 66(2) and 66(2A) of the VAT Act and Regulation 21 of the VAT Regulations 2010 in Ireland, it is permissible to issue invoices in electronic or paperless format. However, public bodies must be equipped to receive and process electronic invoices if they are provided in this manner. For electronic invoicing and recordkeeping systems to be acceptable, they must satisfy certain criteria. These requirements include:
- The ability to produce, retain, and store electronic records and messages in accordance with VAT law, as well as to make these records available to the Irish Revenue Authority upon request.
- Additionally, the system must be capable of reproducing any electronic record or message in either paper or electronic format as necessary.
- The system must also maintain electronic records in a manner that permits retrieval by reference to the issuer or recipient’s name, the message’s date, or its unique identification number.
- Finally, both the issuer and recipient of the invoice must have measures in place to guarantee the origin’s authenticity, content integrity, and a dependable audit trail connecting the invoice and supply during the invoice’s storage duration.
- The Irish Revenue Authority reserves the right to request evidence of the business controls implemented to satisfy these criteria.
Last Updated:06/10/2023
Disclaimer
The information provided by Global VAT Compliance B.V. on this webpage is intended for general informational purposes only. Global VAT Compliance B.V. is not responsible for the accuracy of the information on these pages, and cannot be held liable for claims or losses deriving from the use of this information. If you wish to receive VAT related information please contact our experts at support@gvc.tax
