Acquisitions from EU (Procedure) – Brexit

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
or
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.

Next: When are you required to register to account for ICAs?

Published: 03 October 2018

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
and
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
hospitals
charities.

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.

Example

An insurance company engaged in wholly exempt activities but VAT registered for ICAs acquires goods from a French company to the value of €5,000 for its own use in January 2016.

The insurance company accounts, in its VAT Return for VAT of €1,150 (5,000 @23%). The insurance company cannot claim any input credit. The insurance company must pay Revenue €1,150.

VAT 3 return for January and February 2016
VAT return	Amount
T1 (VAT on sales)	€1,150
T2 (VAT on purchases)	Nil
T3 (VAT payable)	€1,150
T4 (VAT repayable)	Nil
E1 (value of goods sent to other EU countries)	Nil
E2 (value of goods received from other EU countries)	€5,000

Next: What are VIES and Intrastat?

Published: 03 October 2018

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