What information on your ICAs must you submit to Revenue?
You must return details of all intra-Community acquisitions (ICAs) in your Value-Added Tax (VAT) 3 return. VAT must be charged at the appropriate Irish VAT rate in the T1 (sales) box.
You may reclaim the VAT in the T2 (purchases) box, assuming the purchase is deductible for VAT purposes.
The value of the goods acquired must be included in the E2 (ICAs) box.
You must also include details of your ICAs in your annual Return of Trading Details (RTD) form.
When is VAT due on an ICA?
VAT becomes due on:
- the date of issue of the invoice
- if no invoice issues, on the 15th day of the month following the acquisition.
The VAT is payable in the VAT return for the taxable period that corresponds to the date when VAT becomes due.
The VAT is assessed on the price charged for the goods. If the supplier’s invoice is in a foreign currency, the rate of exchange applicable when the VAT becomes due should be used.
When are you required to register to account for ICAs?
Generally, Value-Added Tax (VAT) registered businesses are required to self account for all intra-Community acquisitions (ICAs) and are not subject to a separate threshold.
However, in the case of:
- businesses that are wholly exempt
- other entities whose supplies are outside the scope of VAT
They are required to register in respect of their ICAs of goods where the value exceeds, or is likely to exceed €41,000 in any continuous period of 12 months.
Examples of such businesses or entities includes, but is not limited to, the following:
- insurance companies
- building societies
- public authorities
Such bodies must account for VAT on their ICAs at the appropriate rate. Generally, such bodies are not entitled to deduct VAT, including VAT incurred on ICAs.