Regulation 24(1) of the Value-Added Tax Regulations 2010 (S.I. No. 639 of 2010) requires all VAT registered traders to submit a VAT Return of Trading Details (RTD) on an annual basis, following the end of the respective accounting period.
In the case of companies registered for corporation tax, an annual VAT return will be required for the 12 month period based on the company’s accounting period for corporation tax. The annual return is due to be filed within 23 days of the year end.
The RTD is a summary of supplies of goods and services, imports and purchases giving rise to deductible input VAT at the various VAT rates. The return includes all Irish, intra-EU and overseas trade carried out by the Irish business. The VAT exclusive value of the supply of goods and services should be included. All turnover, including turnover at exempt rates and at the zero rate must be included on the form.
Failure to file may result in increase in Relevant Contracts Tax (“RCT”) rate applicable to sub-contractors and denial of tax clearance certificate
As notified by Revenue in e-Brief No. 51/14, when a business files a claim for a repayment or refund of tax under any tax head and there is an outstanding VAT RTD with a due date within the previous 12 months, then that repayment or refund will be automatically withheld. To date, the Revenue have delayed refunds of tax in this regard, but a failure to file a RTD was unlikely to have had any further impact.
However the Revenue have recently confirmed that in 2018 they intend to increase the RCT rate applicable to sub-contractors who have not filed their RTD and they will also deny tax clearance in such cases. The increase in the RCT applicable to sub-contractors would have a detrimental effect on cash-flow if 20% or 35% of the gross payment to be made was withheld.
Don’t be late
All RTD’s for businesses with a 31 December 2017 year end must submit a RTD on or before 23 January 2018 via the Revenue Online System (“ROS”).
Please contact a member of our indirect tax team if you require assistance with completion of your RTD.