Records

General Obligations

Every accountable person for VAT is obliged to keep full records of all transactions, relating to their VAT liability and deductibility. Records may be kept in electronic form and in other media acceptable to the Revenue Commissioners. Where electronic media are used, each transaction must have a specific number, date and time of entry.

The records must show price received discounts reductions and bad debts. The total price should be shown and must be capable of being cross-referenced to the books of first entry accounts used for financial accounts.

Full records of inter-Community acquisitions must be kept. In the case of payments received from persons in other EU states, the amount receivable and cross-references to the invoice must be maintained.

Where goods are imported, details of the goods must be kept together, with particulars of consideration and  other tax payable on imports. They must be cross-referenced to records, invoices and customs declaration

Traders  who are not VAT-registered must keep invoices supplied.  Revenue may have recourse to the invoices in auditing suppliers.

Where a trader is permitted to account for VAT on a cash basis, appropriate records in respect of cash receipts and payments etc. must be kept.  Records must show the amounts for each transaction and must cross-reference an invoice.  The total price should be shown and must be capable of being cross-referenced to the books of first entry accounts used for financial accounts.

Related Documents

In a range of other circumstances relevant to liability, particulars describing the activity, the supply, the service, together with the costs, consideration and cross-references to invoices and appropriate documents must be retained.

Discounts and price reductions  must be referenced to the relevant credit note and supply. In the case of write-off of debts, particulars of the goods, the supply, the debtor and date of write-off must be kept.

In case of supplies from unregistered persons, particulars of the daily total of consideration payable, cross referenced to purchase books, cash books and records must be kept and maintained.

Particulars of discounts received must be kept in the case of supplies by registered persons and certain other traders.  They must be cross referenced to the corresponding invoice; credit note and cash books. Daily totals must be maintained.

Property

There are specific obligations in relation to the development of property.  Where immovable goods (real property) are developed, constructed, assembled by or for an accountable person and used for his business, particulars must be kept of the property and associated costs. In the case of self-supplies or supplies for no consideration, particulars of the acquisition cost, transfer and the appropriation  must be kept.

In relation to capital goods (in this  context, real property), the owner is obliged to create and keep a capital good record.  It must include particulars of total tax paid, deductible tax, dates on which adjustment periods commence, number of intervals in adjustment periods, total proportion of deductible use, details of adjustments required, details of sales and transfers as well as assignments and surrenders of leases.

Flat Rate and Margin

In the case of supplies from flat-rate farmers, full particulars of the records and supplies are required.

Special obligations apply in relation to the margin schemes.  Records relevant to those schemes must be kept.  The schemes require particular records.

Invoices

An accountable person must issue an invoice in relation to the supply of goods or services to other VAT registered businesses, businesses undertaking about exempt activity, public bodies, corporate in other states to whom VAT is charged, persons in other EU states who must self-account on the reverse charge basis

The Revenue Commissioners have made regulations to give full effect to e-invoicing.  Subject to compliance with the requirements, an electronic invoice may be used. Electronic invoicing is deemed as effective as paper manual invoicing.

Electronically issued invoices must comply with certain security and integrity requirements specified by regulations.  They must contain the requisite information The recipient must have an electronic system that is equally satisfactory, in terms of integrity and authenticity. The recipient must comply with requirements.  The integrity of both systems must be assured.

There are standards in respect of electronic point of sale systems and the application of VAT to them.  They must be capable of providing information which complies with the requisite record requirements

Special Requirements

Revenue Commissioners may require a supplier to issue an invoice type document   to other  customers if they believe that doing so may assist in the prevention or detection of tax evasion.  It must contain all the particulars which an invoice issued under the legislation would contain.  It must state, it is to be issued under the section 108B of the VAT Consolidation Act.

The supplier may exclude from such documents issued reference to section 108B if it uses a sequential number from a series of numbers used for the purpose of identifying VAT invoices and keep specific records of which of those invoices are issued pursuant to that section.  A notice can be issued for a period of up to two months and must commence no earlier than seven days after issue of the notice.  It must inform the person concerned of the consequences of failure to comply with the notice.  Fixed penalty applies to failure.

Retention of Records

VAT records must be maintained for six years after the transaction.  They include  account books, invoices, control statements, customer entries, credit notes, debit notes, received accounts, vouchers, bank statements and other documents relating to the supply of goods, intra-Community acquisitions or the importation of goods as are in the possession or procurement of the taxpayer. The six years runs from the completion of the transaction.

Longer retention periods are required in relation to property.  They must be kept for the duration of the relevant interest, which may run for decades.

VAT records must be kept for six years irrespective, of  company law provisions which allowed disposal of records earlier where companies go into voluntary liquidation.

Documents must be retained from six years from the date of a transaction or, if later, until such time as the relevant proceedings have been finally determined and any time limit for an appeal has expired.  This includes transactions which are the subject of a Revenue inquiry or investigation, any claim by the taxpayer, any appeal proceedings relating to any matter in relation to VAT legislation.

The Revenue have powers to seek information and explanations in identifying taxable supplies in respect of another person.

Invoices and records must be maintained in the State, unless otherwise agreed with Revenue.  The Revenue must be facilitated in inspecting records.  Electronic documents must be available in the State and Revenue must be facilitated in having access to them.

Linking Documents

The obligation to retain VAT related documents for six years appliers  include any linking documents within the power, possession and procurement of the taxpayer.  Linking documents are documents drawn up in the making of accounts and returns and showing details of the calculations linking the records required to be kept by a person to the accounts and returns.

Linking documents is in effect backup documentation in respect of the computations.