Whether you print
VAT invoices straight from your accounting package or manually write them in a
duplicate book, here is a reminder of what needs to be included and when they
should be issued.
VAT invoices must
be issued within 15 days of the end of the month in which goods or services
were supplied. VAT invoices should also be issued for payments received in
VAT invoices should
contain the following:
- A sequential number that uniquely
identifies the invoice
- Invoice date
- Name, address and VAT registration of the
trader issuing the invoice
- Name and address of the customer
- A full description of the goods or services
- Date of supply of the goods or services
- The quantity or volume of the goods
- Unit price of the goods or services in the
case of countable goods and services e.g. hourly rates or prices for standard
services. When a supply of a particular service cannot
readily be broken down into countable elements then the total VAT exclusive
price for the specific service will be accepted as the unit price.
- Any discounts or price reductions not
included in the unit price
- Consideration exclusive of VAT (in €)
- The VAT rate(s) and the amount of VAT at
- If a payment on
account is received prior to the completion of a supply of goods or services,
the date of receipt of this payment must be shown on the invoice if that date
can be determined and differs from the date of issue of the invoice
- The customer’s VAT number in a reverse charge
- In the case of margin scheme or auction scheme goods
the invoice must indicate that the appropriate scheme applies
invoices and credit notes should be filed in numerical order and carefully
A reverse charge
mechanism for VAT on the supply of construction services by a subcontractor to
a principal contractor has been in force since 1 September 2008.
remain VAT registered and submit VAT returns as normal but no longer charge VAT
on invoices raised to principal contractors for the supply of construction
services. Subcontractors must quote their VAT number on all invoices raised to
principal contractors but the invoice will not include the VAT rate or the VAT
amount. The following text should be included on each invoice raised to a
principal contractor – “VAT on this
supply to be accounted for by the principal contractor”. Subcontractors can
still claim a refund of VAT on their business expenses on their VAT return.
The reverse charge
mechanism only applies to construction services
provided to principal contractors.
Therefore subcontractors must still charge VAT as normal on the
- The supply of goods to all customers, including principal contractors.
- The supply of construction services to
individuals and business customers who are not principal contractors for
relevant contracts tax (RCT) purposes.
contractors will calculate the VAT which they would have normally paid the
subcontractor and instead include it on the VAT3 return as VAT on sales (T1)
and claim a simultaneous deduction for this VAT as VAT on purchases (T2), the
net effect being zero.
If you have any queries on the above, please do not hesitate to contact Orla Linehan on 021 4310266 or firstname.lastname@example.org.