Irish VAT returns

Once registered for value added tax (VAT) in Ireland, businesses must declare all taxable transactions and remit any VAT due to the Revenue Commissioners (Revenue).

Irish VAT returns are typically filed bimonthly (every two months). However, monthly filings may be required for businesses with higher turnover as determined by Revenue.

Some smaller traders may be allowed to file monthly or on a quarterly basis at Revenue’s discretion, depending on turnover and compliance history.

Revenue will notify a business of its filing frequency when issuing the VAT registration details.

VAT returns must be submitted by the 15th day of the month following the end of the reporting period. Payments of any VAT due should also be made by this same deadline.

The standard form used for VAT reporting is the VAT 3 return. 

VAT-registered businesses must maintain comprehensive VAT records, including:

• Sales and purchase invoices
• Import and export documentation
• Accounting records and journals supporting VAT entries
• Electronic records that meet Irish bookkeeping standards

These records must be retained for at least six years and be available for inspection by Revenue.

VAT payments are due on the same date that the VAT return is due (i.e., by the 15th day following the reporting period).

Late payments may attract interest and penalties under Irish VAT law.

Input VAT may be reclaimed on goods and services used for taxable business activities, including:

• Goods purchased for resale
• Capital assets and business equipment
• Professional services and utilities
• Import VAT on goods for business use
• Pro-rata deductions for mixed-use expenses such as travel or telecoms

No deduction is allowed for private or non-business expenses.

Foreign businesses may recover Irish VAT under the EU VAT refund procedure (for EU-established entities) or the non-EU refund procedure, subject to eligibility and documentation requirements.

All VAT returns must be submitted electronically via the Revenue Online Service (ROS).

VAT payments are made via bank transfer using the payment instructions provided by Revenue.

Penalties for VAT noncompliance include late filing penalties for overdue VAT returns, interest on late VAT payments, and additional penalties for incorrect or fraudulent returns or omissions. Revenue publishes guidance on penalty amounts and interest rates, which may vary over time.

If input VAT exceeds output VAT for a given period, the resulting credit may be:

• Carried forward to offset future VAT liabilities, or
• Refunded under Ireland’s refund procedures

Refunds are typically processed once Revenue has reviewed the return and supporting records. Delays can occur if additional documentation is needed or if Revenue conducts an audit.