VAT Compliance and Reporting
Registered businesses must comply with VAT regulations and fulfill their reporting obligations to the Irish Revenue. This involves keeping accurate records of VAT transactions, issuing correct VAT invoices, and submitting periodic VAT returns. The frequency of VAT returns depends on the business’s turnover, with most businesses required to submit returns on a bi-monthly or quarterly basis. It is crucial to meet the filing deadlines and ensure accurate reporting of VAT collected and VAT paid on purchases.
VAT Exemptions and Zero-Rated Supplies
Certain goods and services may be exempt from VAT or subject to a zero rate. VAT exemptions apply to specific sectors, such as healthcare, education, and financial services. Businesses engaged in exempt activities are not allowed to reclaim VAT on their related purchases. Zero-rated supplies, on the other hand, are taxable at a 0% rate. Examples of zero-rated supplies include exports of goods outside the EU and international services.
