A supplier must issue a VAT invoice to another vatable person, a State Authority, a person carrying out an exempted activity, persons trading in another state, persons who have to self-account in another state, persons buying in another state under distant selling arrangements.
Persons entitled to reclaim VAT, who are not obliged to be registered for VAT but qualify for certain legislative concessions in relation to repayment of VAT may request an invoice. It must be furnished within 30 days.
The supplier must retain a copy of the invoices, supporting documents and references. They may be retained electronically. See above.
A VAT invoice must be issued by the 15th day of the month following that in which the goods or services are supplied.
A VAT invoice must be issued in the prescribed form. This is central to the VAT system. The VAT issue provides the basis of deduction when it is supplied to a VAT registered trader.
The VAT must be expressed in Euro, although the consideration need not necessarily be in Euros. Where a foreign currency is used, it may be converted at an exchange rate to be agreed by the Revenue, or at the latest selling rate published by the Central Bank.
In some cases, such as in subcontracting in the construction and related industries, where the contractor to whom the supply is made must “self-account”. The subcontractor issues a document but not an invoice.
There are some variations in the information required for various types of invoicing qualify invoice. The following is required for domestic sale
- Date of invoice
- Sequential number
- Name address and VAT number of supplier
- Name and address of buyer
- Quantity and nature of goods or services
- Date of supply of goods or services
- Unit prices excluding VAT discounts VAT exclusive price
- Rate of VAT charged
- VAT payable
Revenue Commissioners may make regulations to give full effect to e-invoicing. Electronic invoicing is deemed as effective as paper manual invoicing. E-provisions may give power to make regulations in relation to invoices.
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
Adjustments and Returns
Where an additional price is payable agreed a supplementary invoice is required. Where a prepayment is made, the invoice must be issued by the 15th day of the following month. The invoice may be raised in the amount of the prepayment.
Where a deposit is taken and the invoice is issued, VAT paid may be recovered, if the transaction does not proceed. A credit note must be issued in respect of the deposit where the transaction does not proceed.
Where prices are adjusted, supplementary invoices are required. The format is prescribed. The supplementary invoice must be issued within 15 days of the adjustment in price.
The format of credit notes and debit notes is prescribed. The credit or debit note must be issued within 15 days of the agreement for price adjustment.
In accordance with certain modern practices, there is provision for self-billing. Certain larger operators operate more efficiently by self-issuing invoices themselves or outsourcing the billing process. Subject to conditions, a supplier may be deemed to have issued an invoice where it is prepared by the customer.
There must be prior agreement between the customer and supplier. Each must be VAT-registered. They must meet the conditions in the regulations in relation to form and content. There must be agreed procedures for the verification of the validity of the invoice. The invoice is deemed to be issued by the supplier. The customer is deemed to issue it in his behalf.
Flat Rate Farmers
There are special rules in relation to flat-rate farmers. The flat-rate farmer is not a VAT-registered. They may elect for an addition of 5.4% to the consideration they receive, for the sale of certain agricultural produce. Such farmers must issue a special form of invoice setting out the consideration exclusive and inclusive of the flat rate addition.
Where the purchaser requires an invoice, it provides the form to enable the flat rate farmer to create the invoice and enters requisite details. The purchaser gives the farmer a copy invoice. The flat-rate farmer may issue an invoice irrespective of the above conditions being met. The regulations make provisions for credit notes. Many of the above provisions in respect of invoicing apply. There are equivalent provisions applicable to flat-rate farmers.
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.