The reduced rate of VAT in Ireland for the tourism and hospitality sector will be changed from 13.5% to 9%, effective from 1 November 2020 to 31 December 2021.
This article will give you a guide on using AutoEntry under these terms.
VAT registered AutoEntry users in the Republic of Ireland.
There are a few points to note for continued use of AutoEntry during and after the changes are in effect. Some changes may occur within your accounts package provider and your first step should be to consult their guidance on the setup and handling of suppliers and invoices etc.
Essentially, AutoEntry will not change. It will still extract the Net, VAT and total figures from your invoices uploaded and it still fully integrates with all accounts packages as before; however, there are a few points to note before and after the reduced rate comes into effect.
Getting a new VAT rate into AutoEntry
Many accounts packages will already provide a "second reduced rate" of 9% in their standard list of VAT rates for Ireland - where this is the case, your AutoEntry company should have already synced this rate. Where it is necessary for a new 9% VAT rate to be added to the accounts package, your AutoEntry company will only receive this when you re-sync - to do this, simply go to the integrations page and click on the 'Re-Sync Data' button. This can take a few minutes to complete and any new VAT rates already set up in your accounts package will be found in the regular drop-down.
You may have already saved settings for suppliers with your old VAT rate. For supplier invoices that have the 9% VAT rate, these simply need to be remembered again with the new 9% rate selections. There is no need to delete previously remembered settings as these will not apply where 9% VAT is present on the invoice and will be needed again for transactions after 31 December 2021.
Invoices with incorrect VAT rate in use
Where an invoice is presented with the 13.5% rate, AutoEntry will extract that figure as normal, and any remembered settings will be applied. We would advise caution before posting invoices to ensure that the supplier has applied the correct VAT rate before publishing through. The invoice data can be edited before publishing if required or edited in your accounts package. AutoEntry does not provide a warning or rate check that the correct VAT rate is in use.
AutoEntry uses the gross total of an invoice as one of the criteria for recognising duplicate invoices. If the same invoice is uploaded twice - one with the 13.5% VAT rate applied, and a second with the 9% rate applied, these will not be flagged as a duplicate as the gross totals will differ. Therefore, caution is recommended when uploading updated invoices and before publishing invoices through to mitigate any errors with duplicate invoices.
If you use AccountsPrep, please refer to AccountsPrep - Irish VAT reduced rate for tourism and hospitality.
And if you do have any queries, of course, please let us know through the chat bubble to the bottom right.
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 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.