Ireland Vat Return

Ireland VAT Return Skill (VAT3) v2.0

General reference only. This skill is general tax/accounting reference material for AI-assisted workflows. It has not been reviewed for any specific person's facts, documents, elections, deadlines, residency, filing status, or local procedures. Do not rely on it to file, pay, amend, or take a tax position without review by a qualified professional in the relevant jurisdiction.

Section 1 — Quick reference

Read this whole section before classifying anything. The workflow runbook is in vat-workflow-base Section 1 — follow that runbook with this skill providing the country-specific content and eu-vat-directive providing the EU directive content.

Key VAT3 boxes:

Note: Ireland's VAT3 is extremely simple — only 4 VAT boxes plus 2 statistical boxes. All the detail goes into the annual RTD and the underlying records.

Conservative defaults — Ireland-specific:

Red flag thresholds:

Section 2 — Required inputs and refusal catalogue

Required inputs

Minimum viable — bank statement for the period in CSV, PDF, or pasted text. Acceptable from: AIB (Allied Irish Banks), Bank of Ireland, PTSB (Permanent TSB), Ulster Bank, KBC Ireland (legacy), Revolut Business, Wise Business, N26, or any other.

Recommended — sales invoices, purchase invoices for input VAT claims above EUR 300, VAT number (IE format), prior VAT3.

Ideal — complete invoice register, prior RTD, carry-forward reconciliation, cash basis election confirmation if applicable.

Refusal policy if minimum is missing — SOFT WARN. If no bank statement → hard stop. If bank statement only → reviewer brief warning.

Ireland-specific refusal catalogue

On top of EU-wide refusals in eu-vat-directive Section 13.

R-IE-1 — VAT group. Trigger: client is part of a VAT group. Message: "VAT groups require consolidated filing. Out of scope."

R-IE-2 — Capital Goods Scheme (Section 64 VATCA 2010). Trigger: client has capital goods with adjustment intervals (20 years for developed property, other intervals for refurbishment). Message: "Capital Goods Scheme adjustments are too complex for this skill. Please use a chartered accountant."

R-IE-3 — Complex property transactions. Trigger: client buys/sells/develops property where the joint option to tax, the two-thirds rule on property, or CGS applies. Message: "Property VAT in Ireland requires specialist advice. Out of scope."

R-IE-4 — Partial exemption. Trigger: client makes both taxable and exempt supplies, exempt proportion non-de-minimis. Message: "You make both taxable and exempt supplies. Input VAT must be apportioned under Section 60 VATCA 2010. Please use a chartered tax adviser."

R-IE-5 — Margin scheme. Trigger: second-hand goods, art, antiques. Message: "Margin scheme requires transaction-level margin computation. Out of scope."

R-IE-6 — Flat-rate farmer scheme. Trigger: client is a flat-rate farmer adding 5.5%. Message: "Flat-rate farmer scheme has special obligations. Out of scope."

R-IE-7 — RCT (Relevant Contracts Tax) / construction reverse charge. Trigger: client is a principal contractor or subcontractor in construction. Message: "RCT reverse charge in construction requires determining whether the contract is a 'relevant contract' under Section 530A TCA 1997. [T2] — flag for review with details of the construction contract."

R-IE-8 — Income tax instead of VAT. Trigger: user asks about income tax. Message: "This skill handles VAT3 only."

Section 3 — Supplier pattern library (the lookup table)

Match by case-insensitive substring. If none match, fall through to Tier 1 rules in Section 5.

3.1 Irish banks (fees exempt — exclude)

3.2 Irish government and statutory bodies (exclude entirely)

3.3 Irish utilities

3.4 Insurance (exempt — exclude)

3.5 Post and logistics

3.6 Transport (Ireland domestic)

Note on Irish transport: Most passenger transport in Ireland is zero-rated (0%), not reduced-rate. This is unusual in the EU. Taxis are the exception at 13.5%.

3.7 Food retail and entertainment

Note on Irish entertainment/meals: Ireland has no hard block on business entertainment VAT. If the meal is a genuine business expense, input VAT at 13.5% is deductible. However, Section 59 VATCA 2010 blocks VAT on entertainment of any kind that is not part of a taxable supply. Default: block for non-hospitality businesses. [T2] flag if client claims business purpose.

3.8 SaaS — EU suppliers (reverse charge, T1/T4)

Since many tech companies bill from Ireland, check whether the supplier is actually Irish (domestic) or billing from Ireland to an Irish customer (domestic, NOT reverse charge).

CRITICAL for Ireland: Most major SaaS companies are billed from their IRISH entity. For an Irish customer, this means they are DOMESTIC supplies at 23%, NOT reverse charge. The invoice will show Irish VAT. Only non-IE EU entities (e.g. Spotify SE, Atlassian NL) trigger reverse charge. Verify the entity country on every invoice.

3.9 SaaS — non-EU suppliers (reverse charge, T1/T4)

3.10 Payment processors

3.11 Professional services (Ireland)

3.12 Payroll and social security (exclude entirely)

3.13 Property and rent

3.14 Internal transfers and exclusions

Section 4 — Worked examples

Six fully worked classifications from a hypothetical Irish self-employed IT consultant.

Example 1 — Non-EU SaaS reverse charge (Notion)

Input line: 03.04.2026 ; NOTION LABS INC ; DEBIT ; Monthly subscription ; USD 16.00 ; EUR 14.68

Reasoning: US entity. Non-EU service — self-account VAT at 23%. Add EUR 3.38 (23% of EUR 14.68) to T1 (output VAT) and the same EUR 3.38 to T4 (input VAT). Net effect zero for fully taxable business.

Output:

Example 2 — Domestic purchase from Irish-based SaaS (Google)

Input line: 10.04.2026 ; GOOGLE IRELAND LIMITED ; DEBIT ; Google Ads April ; -1,045.50 ; EUR

Reasoning: Google Ireland Ltd is an IRISH entity billing an IRISH customer. This is a DOMESTIC purchase at 23%. The invoice will include Irish VAT. EUR 1,045.50 incl. 23% VAT. Net = EUR 850. VAT = EUR 195.50. Input VAT goes to T4. No reverse charge — this is NOT a cross-border transaction.

Output:

Example 3 — Entertainment, blocked by default

Input line: 15.04.2026 ; CHAPTER ONE RESTAURANT ; DEBIT ; Client dinner ; -280.00 ; EUR

Reasoning: Restaurant. Section 59 VATCA 2010 blocks input VAT on entertainment unless it forms part of a taxable supply. For an IT consultant, client entertainment is blocked. Default: block. [T2] flag.

Output:

Example 4 — Zero-rated food purchase (for hospitality business)

Input line: 18.04.2026 ; MUSGRAVES WHOLESALE ; DEBIT ; Food supplies invoice ; -2,400.00 ; EUR

Reasoning: Musgraves is a wholesale food distributor. Most food in Ireland is zero-rated (Schedule 2 VATCA 2010). If the client is in hospitality/catering, this is stock for resale and is zero-rated on purchase. VAT = EUR 0. But the purchase still goes into the records for the RTD. If the client is NOT in food business, this is personal provisioning — block.

Output:

Example 5 — EU B2B service sale (inbound receipt)

Input line: 22.04.2026 ; STUDIO KREBS GMBH ; CREDIT ; Invoice IE-2026-018 IT consultancy ; +3,500.00 ; EUR

Reasoning: Incoming from German company. B2B IT consulting — place of supply is Germany. Invoice at 0%, customer accounts for reverse charge. Report net in E1 (total sales) and underlying records. No output VAT in T1. Verify German USt-IdNr on VIES.

Output:

Example 6 — Motor vehicle, blocked (Section 59)

Input line: 28.04.2026 ; BMW FINANCIAL SERVICES IE ; DEBIT ; Car lease May ; -650.00 ; EUR

Reasoning: Car lease. Section 59 VATCA 2010 blocks input VAT on motor vehicles (purchase, hire, or lease) unless the vehicle is stock-in-trade or qualifying for a short-term hire business. An IT consultant cannot recover VAT on car leases. Hard block. Exception: commercial vehicles (vans, trucks) used solely for business ARE deductible.

Output:

Section 5 — Tier 1 classification rules (compressed)

5.1 Standard rate 23% (Section 46(1)(a) VATCA 2010)

Default rate. Sales → T1 (output VAT). Purchases → T4 (input VAT).

5.2 Reduced rate 13.5% (Section 46(1)(c))

Construction, repair and maintenance of buildings, cleaning services, short-term car hire, restaurant/catering, waste collection, certain fuels (coal, peat, gas for residential). Sales → T1. Purchases → T4 (input VAT at 13.5%).

5.3 Second reduced rate 9% (Section 46(1)(ca))

Newspapers, electronic publications, sporting facilities, hairdressing, printed and digital periodicals.

5.4 Reduced rate 4.8% (Section 46(1)(cb))

Livestock (cattle, sheep), greyhounds. Very niche — unlikely for IT consultants.

5.5 Zero rate (Section 46(1)(b), Schedule 2)

Exports, most food and drink (but NOT alcohol, confectionery, soft drinks, restaurant meals, hot takeaway), children's clothing and footwear, books, oral medicines, medical aids and appliances, fertilisers, seeds, animal feeding stuffs, electricity (domestic — temporarily zero-rated), passenger transport.

5.6 Exempt without credit (Schedule 1)

Financial services, insurance, medical services, education, postal universal service, residential rent, certain sporting and cultural services. If significant → R-IE-4 refuses.

5.7 Reverse charge — EU services and goods

Self-account VAT at 23% on services received from EU suppliers (non-IE). Add to T1 and T4. For EU goods: add to T2 and T4. E2 captures EU acquisitions value.

5.8 Reverse charge — non-EU services

Self-account 23% on services from outside EU. Add to T1 and T4.

5.9 Import VAT (T3)

Goods from non-EU: import VAT at point of entry or via postponed accounting (if approved). Report in T3 (output) and T4 (input if deductible).

5.10 Blocked input VAT (Section 59 VATCA 2010)

• Motor vehicles: purchase, hire, lease of motor cars — hard block. Exception: stock-in-trade, short-term hire business, driving school.
• Petrol: fully blocked. Diesel for commercial vehicles: deductible.
• Entertainment: blocked unless part of a taxable supply.
• Food and drink: personal consumption blocked.
• Accommodation: blocked unless in the course of a taxable supply.

5.11 Two-thirds rule (Section 41)

If a composite supply consists of ≥2/3 goods (by value), the entire supply is taxed at the goods rate. If ≥2/3 services, entire supply at services rate. [T2] — requires analysis of the supply composition.

5.12 Cash basis (Moneys Received basis)

If turnover < EUR 2 million and approved by Revenue, VAT on sales can be accounted for when payment is received rather than when invoiced. Purchases are still accounted on invoice basis. [T2] — confirm with client.

5.13 RTD (Return of Trading Details)

Annual return with 6 categories: (1) goods at standard rate, (2) goods at reduced/zero rate, (3) services at standard rate, (4) services at reduced/zero rate, (5) exempt supplies, (6) non-deductible purchases. Not due with every VAT3 but must be prepared at year end.

5.14 Sales — cross-border B2C

EU consumers above €10,000 threshold → R-EU-5 (OSS refusal). Below threshold → Irish VAT.

Section 6 — Tier 2 catalogue (compressed)

6.1 Fuel and vehicle costs

Pattern: Topaz, Circle K IE, Applegreen, Maxol. Default: block (petrol always blocked; diesel for commercial vehicles only). Question: "Is this petrol (blocked) or diesel for a commercial vehicle?"

6.2 Entertainment

Pattern: restaurant, pub, hotel meal. Default: block under Section 59. Question: "Is this entertainment part of a taxable supply? (If not, VAT is blocked.)"

6.3 Ambiguous SaaS billing entities

Default: check if IE entity (then domestic 23%, not reverse charge). Question: "Check invoice — is this billed from an Irish entity or foreign?"

6.4 Round-number owner transfers

Default: exclude as owner injection. Question: "Customer payment, capital, or loan?"

6.5 Incoming from individuals

Default: domestic sale — determine rate based on goods/services. Question: "Was this a sale? What was supplied?"

6.6 Foreign counterparty incoming

Default: check if EU B2B or B2C. Question: "B2B with VAT number or B2C? Country?"

6.7 Large one-off purchases

Default: normal input VAT in T4. Question: "Confirm invoice amount and what was purchased."

6.8 Mixed-use phone/internet

Pattern: Eir, Three, Vodafone personal lines. Default: 0% if mixed. Question: "Dedicated business line? Business percentage?"

6.9 Outgoing to individuals

Default: exclude as drawings. Question: "Contractor, wages, refund, or personal?"

6.10 Cash withdrawals

Default: exclude. Question: "What was cash used for?"

6.11 Rent payments

Default: no VAT (residential). Question: "Commercial property? Does landlord charge VAT?"

6.12 Foreign hotel

Default: exclude from input VAT. Question: "Business trip?"

6.13 Construction services (RCT)

Pattern: builder, contractor, plumber, electrician. Default: domestic 13.5% in T4. Question: "Are you a principal contractor? Is this a relevant contract under RCT?" If yes → R-IE-7 fires.

6.14 Two-thirds rule composite supplies

Pattern: single invoice combining goods and services. Default: treat as services at applicable rate. Question: "What proportion of this supply is goods vs services?"

Section 7 — Excel working paper template (Ireland-specific)

The base specification is in vat-workflow-base Section 3. This section provides the Ireland-specific overlay.

Sheet "Transactions"

Columns A–L per the base. Column H ("VAT3 box") accepts: T1, T2, T3, T4, E1, E2. For reverse charge, enter "T1/T4" (both output and input). Column M for RTD category (1–6, for annual RTD preparation).

Sheet "Box Summary"

Ireland's VAT3 is very simple:

| T1 | Output VAT (incl. reverse charge output) | =SUMIFS(Transactions!F:F, ..., "T1") |
| T2 | VAT on intra-EU acquisitions | =SUMIFS(Transactions!F:F, ..., "T2") |
| T3 | VAT on imports | =SUMIFS(Transactions!F:F, ..., "T3") |
| T4 | Deductible input VAT | =SUMIFS(Transactions!F:F, ..., "T4") |
| NET | VAT payable / refundable | =C[T1]+C[T2]+C[T3]-C[T4] |
| E1 | Total sales value | =SUMIFS(Transactions!E:E, ..., sales rows) |
| E2 | EU acquisitions value | =SUMIFS(Transactions!E:E, ..., EU acq rows) |

Sheet "Return Form"

Positive NET → payable to Revenue.
Negative NET → refund from Revenue.

Mandatory recalc step

python /mnt/skills/public/xlsx/scripts/recalc.py /mnt/user-data/outputs/ireland-vat-<period>-working-paper.xlsx

Section 8 — Ireland bank statement reading guide

CSV format conventions. AIB exports use comma-separated with DD/MM/YYYY dates. Bank of Ireland uses similar format. PTSB may use semicolons. Common columns: Date, Description, Debit, Credit, Balance.

Irish language variants. Most descriptions are in English. Occasional Irish: cíos (rent), tuarastal (salary), ús (interest). Treat as English equivalents.

Internal transfers. Labelled "transfer", "own account", "internal". Always exclude.

Owner draws. Sole trader transfers to personal account are drawings — exclude.

Refunds. Identify by "refund", "credit note", "reversal". Book as negative.

Currency. EUR only for domestic. Foreign currency → convert at ECB rate.

IBAN prefix. IE = Ireland. GB = UK (non-EU post-Brexit). DE, FR, NL = EU. US, AU, CH = non-EU.

Important post-Brexit note: UK (GB) is non-EU. Supplies to/from UK are treated as non-EU (imports/exports), NOT intra-EU. Northern Ireland has special protocol for goods.

Section 9 — Onboarding fallback (only when inference fails)

9.1 Entity type

Inference rule: sole trader vs Ltd vs DAC vs LLP. Fallback: "Are you a sole trader, company limited by shares (Ltd), DAC, or partnership?"

9.2 VAT registration status and basis

Fallback: "Invoice basis or Moneys Received (cash) basis?"

9.3 VAT number

Fallback: "What is your VAT number? (IE + 7 digits + 1-2 letters)"

9.4 Filing period

Fallback: "Bi-monthly, quarterly, monthly, or annual? Which period?"

9.5 Industry

Fallback: "What does the business do?"

9.6 Employees

Inference rule: PRSI, PAYE, salary outgoing. Fallback: "Do you have employees?"

9.7 Exempt supplies

Fallback: "Do you make VAT-exempt sales?" If yes → R-IE-4 may fire.

9.8 Credit brought forward

Always ask: "Excess credit from previous period?"

9.9 Cross-border customers

Fallback: "Customers outside Ireland? EU or non-EU? B2B or B2C?"

9.10 Property / construction

Fallback: "Do you deal in property or construction?" If yes → R-IE-2/R-IE-3/R-IE-7 may fire.

Section 10 — Reference material

Validation status

v2.0, rewritten April 2026. Awaiting validation by Irish chartered accountant or chartered tax adviser.

Sources

1. VATCA 2010 (Value-Added Tax Consolidation Act 2010) — https://www.irishstatutebook.ie
2. Revenue guidance — https://www.revenue.ie
3. ROS — https://www.ros.ie
4. Council Directive 2006/112/EC — via eu-vat-directive companion skill
5. VIES — https://ec.europa.eu/taxation_customs/vies/
6. ECB exchange rates

Known gaps

1. The SaaS pattern library is critical for Ireland — most major tech companies bill from IE entities, making them domestic rather than reverse charge. Verify each supplier.
2. Capital Goods Scheme (Section 64) is entirely excluded.
3. Two-thirds rule (Section 41) is flagged as Tier 2 but not fully worked.
4. Northern Ireland Protocol for goods is not fully addressed.
5. Cash basis eligibility and mechanics are noted but not detailed.
6. Energy VAT rates may have temporary changes — verify current rates.

Change log

• v2.0 (April 2026): Full rewrite to three-tier Accora architecture.
• v1.0 (April 2026): Initial draft. Standalone document.

Self-check (v2.0)

1. Quick reference with VAT3 box table and conservative defaults: yes (Section 1).
2. Supplier library with Irish patterns: yes (Section 3, 14 sub-tables).
3. Worked examples: yes (Section 4, 6 examples).
4. Tier 1 rules compressed: yes (Section 5, 14 rules).
5. Tier 2 catalogue: yes (Section 6, 14 items).
6. Excel template with recalc: yes (Section 7).
7. Onboarding as fallback: yes (Section 9, 10 items).
8. All 8 Ireland-specific refusals: yes (R-IE-1 through R-IE-8).
9. Reference material at bottom: yes (Section 10).
10. Multiple rates (23%/13.5%/9%/4.8%/0%) documented: yes.
11. Irish SaaS domestic exception (IE entities = domestic, NOT reverse charge): yes (Section 3.8, Example 2).
12. Motor vehicle hard block (Section 59): yes (Section 5.10, Example 6).
13. Zero-rated food documented: yes (Section 5.5).
14. Passenger transport zero-rated: yes (Section 3.6).

Disclaimer

This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. Open Accountants and its contributors accept no liability for any errors, omissions, or outcomes arising from the use of this skill. All outputs must be reviewed and signed off by a qualified professional (such as a CPA, EA, tax attorney, or equivalent licensed practitioner in your jurisdiction) before filing or acting upon.

The most up-to-date, verified version of this skill is maintained at openaccountants.com. Log in to access the latest version, request a professional review from a licensed accountant, and track updates as tax law changes.

Source: OpenAccountants — open tax Guides for AI, reviewed by named CPAs/CAs/EAs. Quality: source-cited draft. For always-current figures and named-accountant backing, connect the OpenAccountants MCP server (openaccountants-mcp).