Navigating Irish evolving e-invoicing and tax regulations can be challenging. This guide provides an overview of the latest requirements to help you stay compliant and avoid potential penalties.
In the guide, we will cover:
Regulations Timeline
Ireland E-invoicing Requirements (2024 Updated)
Tax Regulations
Digital Reporting
Penalties
Achieving Global Invoicing and Tax Compliance with Space Invoices
Regulations Timeline
A quick overview of all current and upcoming regulations that Ireland mandates regarding e-invoicing and digital reporting. For a complete list of countries with mandatory B2B e-invoicing regulations, click here. For a comprehensive general guide to e-invoicing regulations by country, click here.
Regulations in Effect:
Mandatory sending and receiving of e-invoices for Mandatory sending and receiving of e-invoices for all local authorities and public administration bodies;;
Voluntary e-invoicing for B2G, B2B and B2C transactions.
Upcoming Changes to Irish E-invoicing:
No upcoming regulations as of the date.
Ireland E-invoicing Requirements (2024 Updated)
In Ireland, the only current e-invoicing mandate regulates all local authorities and public administration bodies to send and receive e-invoices.
While B2G, B2B and B2C e-invoicing is voluntary for now, many Irish businesses have already adopted this technology. The benefits of e-invoicing include improved operational efficiency, faster payment processing, better compliance with tax regulations and significant cost savings, making it a better choice than traditional paper invoices.
To support this transition, Ireland has implemented:
The PEPPOL network
Directive 2014/55/EU
Governmental Body Responsible for E-invoicing
The Office of Government Procurement (OGP) is responsible for e-invoicing regulations in Ireland.
Click here to visit their official website.
E-invoicing Formats
In France, e-invoices are typically exchanged using the XML format, usually in either UBL or PEPPOL BIS Billing 3.0. Businesses connect to Chorus Pro; facilitating the exchange of electronic invoices between B2B and supports the French government’s commitment to streamlined digital invoicing.
E-invoice Requirements
Invoices must be issued on the date of supply of goods, or at the latest by the 15th day of the month following the month end of any supply. They can be issued in either electronic or paper form and must include the following components:
Identification of the Seller and the Buyer: full name, address, and VAT identification number;
Unique Invoice Number;
Date of issue;
Description of Goods/Services: Details of the goods or services, quantity and unit price;
VAT Information: total amount excluding VAT, applicable VAT rate, total VAT amount;
Total amount Including VAT;
Payment terms: details, including due date and payment method; if applicable, also reverse-charge, margin scheme and zero-rated or exempt status.
Currency;
If It’s a Cross-Border Transaction: Include the customer's VAT number for intra-EU supplies.
Certain transactions may require additional information:
B2C Transactions:
Simplified Invoices Include:
E-invoice Archiving
E-invoices must be archived for a minimum of six years.
Tax Regulations
Value Added Tax (VAT)
In Ireland, the standard VAT rate is 23% and applies to most goods and services.
However, Ireland also enforces reduced VAT rates:
13.5% rate: Applies to hospitality, tourism, and certain construction services;
9% rate: Applies to newspapers, e-books, and certain cultural services;
4.8% rate: Applies to livestock.
0% rate: Some foodstuffs; certain animal feed; some food supplies for food production; some medicines, etc.
Corporate Tax
The standard corporate tax rate in Ireland is 12.5%. There is a reduced rate of 6.25% for companies derived from qualifying intellectual property assets developed in Ireland.
However, there are also higher tax rates:
25% rate: For companies with non-trading income, such as rental income, investment income, and profits from foreign trades.
33% rate: Companies with chargeable capital gains made by companies.
VAT on Digital Services in Ireland
Digital services in Ireland are generally subject to an 23% VAT. However, foreign companies selling digital services to Irish consumers have some extra regulations:
EU- based businesses are required to register for VAT in France or opt for the EU's One-Stop Shop (OSS) scheme, if their annual turnover from these services exceeds €10,000.
Non-EU businesses have no minimum threshold; VAT must be charged on all sales to French consumers.
B2B Transactions: If the buyer is a VAT-registered business in Ireland, VAT is not charged by the seller. Instead, the buyer accounts for VAT under the reverse-charge mechanism.
Digital services that are subject to VAT include e-books, software downloads, music, movies, games, and other electronically supplied services.
Digital Reporting
Ukraine has already introduced several digital reporting requirements, with more to come:
Mandatory sending and receiving of e-invoices for all local authorities and public administration bodies;
B2B, B2C and B2G e-invoicing is voluntary;
VAT returns must be filed electronically through the Revenue Online Service (ROS)
Businesses must submit an annual Return of Trading Details electronically.
VAT Registration and Thresholds
VAT registration threshold of €40,000: Businesses supplying services only and businesses supplying goods liable at reduced or standard rates, manufactured from zero-rated materials.
VAT registration threshold of €80,000: Businesses supplying both goods and services, where 90% or more of the turnover is from the supply of goods, or businesses supplying only goods.
VAT registration threshold of €10,000: For taxable persons making mail-order or intra-Community distance sales of goods and cross-border telecommunications, broadcasting, and electronic (TBE) services into the State.
For intra-Community acquisitions from other EU Member States, the threshold is €41,000.
VAT Returns and Payments
All VAT returns must be filed electronically through the Revenue Online Service (ROS). The filing deadline is the 19th day of the month following the end of each taxable period, extended to the 23rd day for ROS filers:
Bi-monthly: Standard reporting period.
Quarterly: If annual VAT liability is between €3,001 and €14,400.
Semi-annual: If annual VAT liability is €3,000 or less.
Monthly: Generally for businesses in a constant VAT repayment position.
Penalties
Failure to register for VAT ends up in a penalty of €4,000.
Failure to charge and pay VAT ends up in a penalty of €4,000.
If you fail to keep proper books and records, a penalty of €4,000 is imposed.
For a failure to comply with invoicing requirements also a penalty of €4,000 is imposed.
Late submission or non-submission of VAT returns ends up with a penalty of €4,000 per instance.
If you are late paying your VAT, an Interest of 0.0274% per day will be imposed on the unpaid amount. There is also a potential for an additional penalty of €4,000 fine for significant delays.
For incorrect VAT records, a penalty of €3,000 can be imposed for careless behaviour and a penalty of €5,000 for deliberate behaviour.
E-Invoicing Non-Compliance: Penalty: €4,000. Description: Applies to failures in adhering to e-invoicing requirements, such as not issuing electronic invoices when mandated.
Achieving Global Invoicing and Tax Compliance with Space Invoices
One way to comply with (e-)invoicing, tax, and reporting regulations in Ireland is to use a provider like Space Invoices.
You will be able to:
Use one API for current and future global tax and invoicing compliance, including Ireland
Save time and money with integration that takes less than a week
Support and upsell your clients worldwide, including Ireland
Ensure all documents are archived and successfully reported to responsible institutions
Become a one-stop shop for current and future clients
Streamline processes and eliminate manual errors, saving time and money
Do you have questions about achieving compliance in Ireland?
We are ready to help.
The information in this guide is strictly informative, as regulations and timelines change frequently. While we make every effort to monitor updates and maintain the accuracy of our content, we recommend consulting with a tax professional or e-invoicing specialist for the most reliable and personalized advice. This guide was last updated on December 13, 2024.
Looking to automate real-time reporting and tax compliance for Ireland? Let's talk