E-invoicing in Ireland- what you need to know
It has been reported that the Irish Revenue are currently evaluating possible options to modernise the Irish VAT system and are considering new digital reporting requirements. The move towards e-invoicing and digital reporting is the clear direction of travel for tax authorities and governments across the globe. In parallel to Ireland, the European Commission is pursuing its “VAT in the Digital Age” initiative and considering a pan-European approach to e-invoicing and digital reporting.
While B2B e-invoicing is not mandatory in Ireland, businesses can issue tax invoices in electronic format subject to certain conditions. The issue of invoices or other documents in electronic format is subject to agreement between both parties. In addition, the e-invoicing system used by the Irish VAT registered business must be able to:
(a) Produce, retain and store electronic records and messages in such form, and containing such particulars, as are required for Irish VAT purposes, and make them available to the Irish Revenue on request
(b) Reproduce in paper or electronic format any electronic record or message required to be produced, retained or stored
(c) Maintain electronic records in a manner that allows their retrieval by reference to the name of the person who issues or receives the message or the date of the message or the unique identification number of the message
(d) Ensure the integrity of the contents, validate the source of the document and provide a reliable audit trail for the transaction and its supporting documents.
Ireland has chosen PEPPOL (Pan European Public Procurement Online) as the method of delivery for e-invoices to the public sector. While B2G e-invoicing in Ireland is not mandatory for businesses, in line with the European Directive 2014/55/EU, public bodies in Ireland must now be able to receive and process electronic invoices. Ireland has a National eInvoicing Programme (eInvoicing Ireland) which is engaging with public sector partners, Irish businesses and service providers and communicating with stakeholder groups, to establish a national framework agreement for the procurement of eInvoicing services.
VAT registered businesses in Ireland must e-file their VAT returns via the Revenue Online Service (ROS). This e-filing requirement covers:
- VAT return (Form VAT 3)
- Annual Return of Trading Details (RTD)
- Monthly/quarterly return relating to zero rated supplies for the VAT Information Exchange System (VIES/ECSL)
In order to e-file return, businesses must first register to use ROS. Please note that there are penalties for failing to meet obligations to pay and file returns electronically.
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