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.