The 2012 worldwide VAT, GST and sales tax guide

318 I RELAND
Foreign-currency invoices. A VAT invoice may be issued in a foreign
currency, but the actual VAT amount must be converted to
euros and included on all VAT invoices issued. The invoice
amounts must be converted using the latest selling rate recorded
by the Irish Central Bank at the time of supply.
It is possible to agree on a different exchange rate method with the
Irish VAT authorities. If an alternative method is used, the accountable
person must use it for all foreign-currency transactions.
J. VAT returns and payment
VAT returns. Irish VAT returns are generally submitted on a
bimonthly basis. Effective from 1 October 2011, all VAT returns
must be filed electronically in Ireland. Returns and full payment
of the VAT due must be made by the 23rd day of the month following
the return period.
Biannual or four monthly VAT returns may be submitted by traders
whose total VAT payment for the year is less than €3,000 or
between €3,000 and €14,000, respectively.
An accountable person that receives regular repayments of VAT
may request to submit monthly returns.
Annual Return of Trading Details. All accountable persons must
submit an Annual Return of Trading Details, which outlines sales
and purchases for the year, broken down by VAT rate. It is a statistical
return. Consequently, no VAT liability is attached to such
return.
Cash accounting. Irish VAT is normally accounted for on an
accrual basis; that is, on the basis of invoices issued and received.
Some taxable persons are permitted to account for VAT on a cash
basis; that is, on the basis of money received. Either of the following
may opt for cash accounting:
• Accountable persons such as retailers and similar businesses
that supply goods or services almost exclusively (at least 90%
of turnover) to persons that are not registered for VAT
• Accountable persons whose annual turnover does not exceed
€1 million
Annual accounting. Some accountable persons are permitted to
submit VAT returns on an annual basis. This facility is granted at
the discretion of the Irish VAT authorities. Accountable persons
that submit annual returns must also complete the annual return
of trading details.
An accountable person that is permitted to use the above facility
may align its annual VAT return date with its commercial accounting
year.
An accountable person that is permitted to submit annual returns
must make monthly VAT payments by direct debit throughout the
year. Interest may be chargeable if the sum of the monthly payments
made is less than 80% of the total VAT payable for the year.
Penalties. The basic penalty for the late submission of a VAT
return is €4,000 per return. However, if the Irish VAT authorities
determine that an error was made as a result of the taxpayer acting
carelessly or deliberately defaulting, penalties may be imposed