EU VAT / VIES Returns
What is a VIES Return?
Irish businesses can apply the zero rate of VAT when they sell goods or services to a VAT registered business customer in another EU country.
Since 1 January 2010, to comply with EU and local tax law, all Irish VAT-registered businesses providing services to customers in other EU member states must submit VIES (VAT information exchange system) returns where the customer is a business customer.
VIES Returns must be filed by electronic means to Irish VAT authorities before the 23th day of the month following the reporting period. i.e. the January return is due by 23 February.
The information submitted on the return is shared between EU tax authorities to ensure compliance – i.e., the zero rate for VAT was correctly applied.
When to apply Zero rate of VAT to customers in the EU
The zero rate of Value-Added Tax (VAT) can apply to an intra-Community supply (ICS) of goods, if the following conditions are met:
- The customer must be registered for VAT in another Member State
- You must obtain and retain the customer's VAT registration number (including country prefix)
- You must quote your VAT number and your customer’s VAT number on the sales invoice
- The goods must be dispatched or transported to another Member State
- Correct VIES Returns must be made by the supplier.
You must charge Irish VAT to your customer at the appropriate rate for the goods.
If the requirement to submit a correct VIES return is not met, the Zero rate cannot apply to the supply of the goods.
Revenue may not be satisfied that the goods have been sold and delivered to a VAT registered person in another Member State. In such cases, the supplier will become liable and must charge Irish VAT.
However, if the conditions for zero-rating are subsequently established then:
- the customer is entitled to recover the VAT he or she has paid
- the supplier can then make an adjustment in their VAT return for the period.
VIES FAQ
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DoMyBooks is a firm of expert Irish accounting professionals and are authorised to present filings and tax returns on your behalf. With offices in Dublin and Galway, DoMyBooks provide complete accountancy services and training to Irish businesses of all sizes. If you need assistance or would like to discuss your filing prior to submission please feel free to contact us at 091-442009 or info@domybooks.ie
