Chapter 2 - Invoicing

66. Issue of invoices and other documents

Summary

This section deals with the issue of invoices by accountable persons. It also sets out the rules on how such invoices may be issued electronically. Note that the actual particulars that must appear on invoices – such as names and VAT numbers – are set out in regulations. There are also regulations governing the form that invoices may take.

The section also provides for the issue of documents by suppliers of carbon credits, suppliers of scrap metal, by building sub-contractors to principals, by suppliers of construction services to connected persons, by suppliers of gas or electricity to taxable dealers or by suppliers of gas or electricity certificates to other taxable persons under reverse charge arrangements. In these cases, the documents contain all the details that would be on an invoice except the rate of tax and the amount of tax payable, and also show that the customer is liable under the reverse charge.

Details

(1)(a) Subsection (1) provides that where an accountable person supplies goods or services to another accountable person, to a public body (as defined in section 2(1)), to an exempt entity, to a person (other than a private individual) in another Member State, to a person in another Member State where the reverse charge rules apply, or who supplies goods to an unregistered person in another Member State under the distance-selling rules, he/she must issue a VAT invoice in paper or electronic format in accordance with regulations. See Regulation 20 of the VAT Regulations 2010.

(b) Simplified invoices to the amount of €100 or less may be issued in relation to certain transactions.

(c) Summary invoices may be issued where multiple supplies are made to the same customer during a calendar month.

(2) Subsection (2) provides for the electronic issue of invoices or other documents where there is prior agreement between the person issuing and the person receiving the invoice and the electronic system used to issue or receive the invoice conforms with specifications as are required by regulations. Traders do not require an authorisation from Revenue to issue invoices electronically. However, Regulation 21 of the VAT Regulations 2010 sets out the conditions and the systems specifications that must be met for those invoices etc. to be valid for VAT purposes.

(2A)(a) Subsection (2A) provides that the person issuing or receiving an invoice shall use business controls to ensure the authenticity of the origin of the invoice, the integrity of its contents and provide for a reliable audit trail.

(b) Evidence of complying with paragraph (a) shall be furnished if required by the Revenue Commissioners.

(3) Subsection (3) relates to the reverse charge for domestic supplies of greenhouse gas emission allowances, which came into effect on 8 April 2010. It provides that the supplier must issue a document to the recipient indicating that the recipient is liable to account for the tax chargeable on the supply. This document must contain the details required on a VAT invoice, other than the rate of tax chargeable and the amount of tax payable.

(4)(a) Subsection (4) relates to the reverse charge for construction services provided by a subcontractor to a principal contractor, which came into effect on 1 September 2008. The subcontractor in the State must issue a document in respect of the supply of construction services in the State for which the principal contractor is liable to pay the tax. This document must indicate that the principal contractor is liable to account for the tax chargeable on the supply. The document must contain the details required on a VAT invoice, other than the rate of tax chargeable and the amount of tax payable.

(4)(b) Where the subcontractor and principal contractor agree, this document may be issued by the principal contractor and may be treated as a VAT invoice on which the principal contractor, while accounting for the VAT, may take a simultaneous deduction for the VAT incurred, subject to the usual rules regarding deductibility.

(4)(A) Subsection (4A) relates to the reverse charge mechanism for the scrap metal industry, which came into effect on 1 May 2011. It provides that the supplier of the scrap metal must issue a document to the recipient indicating that the recipient is liable to account for the tax chargeable on the supply, unless the recipient and the supplier of the scrap metal agree that the document can be drawn up by the recipient. This document must contain the details required on a VAT invoice, other than the rate of tax chargeable and the amount of tax payable.

(4)(B) Subsection (4B) relates to the reverse charge mechanism for construction services supplied by an accountable person to a connected person who is a taxable person, which came into effect on 1 May 2012. It provides that the supplier of construction services must provide a document to the recipient indicating that the recipient is liable to account for the VAT, unless the recipient and the person who supplied the construction services agree that the document can be drawn up by the recipient. This document must contain the details required on a VAT invoice, other than the rate of tax chargeable and the amount of tax payable.

(4)(C) Subsection (4C) relates to the reverse charge mechanism for gas or electricity supplied by a taxable person who carries on a business in the State to a taxable dealer who carries on a business in the State, which came into effect on 1 January 2016. It provides that the supplier of the gas or electricity must provide a document to the recipient indicating that the recipient is liable to account for the VAT, unless the recipient and the supplier of the gas or electricity agree that the document can be drawn up by the recipient. This document must contain the details required on a VAT invoice, other than the rate of tax chargeable and the amount of tax payable.

(4)(D) Subsection (4D) relates to the reverse charge mechanism for a gas or an electricity certificate supplied by a taxable person who carries on a business in the State to another taxable person who carries on a business in the State, which came into effect on 1 January 2016. It provides that the supplier of the gas or electricity certificate must provide a document to the recipient indicating that the recipient is liable to account for the VAT, unless the recipient and the supplier of the gas or electricity agree that the document can be drawn up by the recipient. This document must contain the details required on a VAT invoice, other than the rate of tax chargeable and the amount of tax payable.

Relevant Date: Finance Act 2020