The standard rate of VAT in Ireland will be reduced from 23% to 21%, effective from 1 September 2020 to 28 February 2021.
As this new rate is temporary and not applicable to all transactions, we recommend the use of a new custom VAT code, to be applied as appropriate. This will make it simpler to identify transactions you're entering during this temporary period for reconciliation and anlysis purposes.
For AccountsPrep companies set up with an Irish template on or after Friday 31 July 2020, this new tax code will already be available for you to use in that template's tax codes ("Temporary Standard Rate").
For AccountsPrep companies that were already set up with Irish templates before Friday 31 July 2020, you will need to create this new tax code yourself by going to Settings -> Tax Codes and "Add Tax Code":
Your new tax code is now ready to use for transactions dated from 1 September 2020.
If you also use AccountsPrep's Default Tax Codes per Nominal Account feature, you may also want to review and update these settings.
For guidance on what the new standard rate means for AutoEntry in general, please refer to AutoEntry and the Irish standard VAT rate change.
This article provides general rather than specific guidance to assist all of our customers. We always do our best to make sure that the information is correct but as it's general guidance, no guarantees can be made concerning its suitability for your particular needs. The information is valid at the time of publishing and is provided without any warranty of any kind, express or implied. You should take professional advice if you require specific guidance on your individual circumstances, for example to ensure that the results obtained from using our software comply with statutory or regulatory requirements. For VAT, customs and excise and duties enquiries you should contact The Revenue. In no event will we be liable to you for any direct, indirect, consequential or incidental loss or damage arising out of or in connection with your use of the information provided.