VAT Rate Change in Ireland : 1 September 2020

By nguadmin, Thursday, 3rd September 2020 | 0 comments

Dear Member,

The Irish government have announced a temporary reduction in the standard VAT rate from 23% to 21% for the 6 months from 1 September 2020 to 28 February 2021. 

This will impact the rate of VAT on any invoices and/or credit notes that you submit.

 

Action Required for Invoices

 

If your standard rated invoice has a date on or after 1 September 2020, please enter 21% VAT. 

If your standard rated invoice has a date on or after 1 March 2021, please enter 23% VAT.

 

Action Required for Credit Notes

 

The VAT rate on the credit note must match the VAT rate on the original invoice.  

 

Example 1:  An invoice is raised in August 2020 at 23% VAT. The corresponding credit note is raised in September 2020.  The VAT rate on the credit note should match the original invoice, therefore 23% VAT must be entered..

 

Example 2:  An invoice is raised in September 2020 at 21% VAT. The corresponding credit note is raised in October 2020.  The VAT rate on the credit note should match the original invoice, therefore 21% VAT must be entered.