Invoicing and Tax regulation in Ireland
Invoicing Regulation in Ireland
Invoicing regulation in Ireland is both a necessity and a legal requirement for all businesses regardless of their nature of transactions (b2b, b2c, or b2g). Irish tax legislation requires that all businesses, whether they are supplying goods or services, must issue an invoice as proof of their transactions and for tax recording purposes. Businesses must ensure to comply with this regulation to avoid financial penalties.
Real-Time Reporting / Fiscalization in Ireland
Real-time reporting or fiscalization is a concept adopted by the Irish tax authority, colloquially known as PAYE Modernisation. Since the initiation in January 2019, businesses are obliged to report their employees' pay and deductions to Revenue in real-time. It's mandatory for all businesses and applies equally to b2b, b2c, and b2g.
E-invoicing in Ireland
E-invoicing is not mandatory in Ireland but is highly recommended for businesses to maintain competitiveness. As of 2019, all Public Service Bodies in Ireland are required to be capable of receiving e-invoices. It applies to b2b, b2c, and notably, to b2g businesses as the Government strongly encourages electronic invoicing for a more efficient and streamlined process.
VAT/GST/Tax Compliance in Ireland
Value-added tax (VAT), also referred to as Goods and Services Tax (GST) in some jurisdictions, is a consumption tax levied in Ireland. The standard VAT rate is 23%, but it can vary depending on the nature of goods or services provided. All businesses in Ireland, be it b2b, b2c or b2g are required to be VAT compliant. Non-compliance can result in hefty penalties and sanctions. Regular tax filings and declarations are also mandatory for all businesses.