VAT

 

THERE ARE TWO DIFFERENT METHODS OF RETURNING VAT TO THE REVENUE :

            
  • SALES INVOICE BASIS
            
or
            
  • CASH RECEIPTS BASIS
 
 
THE METHOD OF RETURN WHICH YOU APPLY IS INDICATED IN YOUR VAT REGISTRATION CERTIFICATE AND IS DECIDED BY THE REVENUE. 
 
AN APPLICATION TO CHANGE MAY BE MADE DIRECTLY TO THE REVENUE. YOU MAY ONLY CHANGE THE METHOD APPLIED ONCE CONFIRMED BY THE REVENUE.
 
 
 
The difference between both methods relates only to how VAT on Sales is returned to Revenue.
 
 

Sales Invoice Basis

 

Under the Sales Invoice Basis, VAT becomes payable to the Revenue once a sale is made/ sales invoice raised irrespective of whether or not settlement of the invoice has been received.

 
 

Cash Receipts Basis

 

Under the Cash Receipts Basis, VAT only becomes payable upon receipt of cash in settlement of a sale. 

If a sales invoice has been made you need not pay the VAT to the Revenue until you receive settlement of the invoice. Upon settlement, the VAT becomes payable on the amount received.

 

  

Need help? Support is available at 01 8352074 or support@thesaurus.ie.

GeneralBureau Users OnlyCompany SetupCustomersSuppliersProductsOpening BalancesCustomising for your useSales EntrySales Invoice PrintingCustomer StatementsReceipts EntrySales Related ReportsBad DebtsPurchases EntryPayments EntryPurchases Related ReportsSupplier Remittance AdviceBank TransfersReconciling Bank AccountsCorrections and DeletingVAT ReturnsDirectors TransactionsSubcontractorsPrincipal ContractorsFixed AssetsReportsPetty Cash TransactionsLease RepaymentsHire Purchase RepaymentsDirectors Salary / RemunerationThesaurus Payroll JournalThird Party Payments / Form 46GJournal EntryAudit FileAccounts ProductionStock ControlArchive TransactionsBacking up your Company FilesRestoring a Back UpCSV ImportSchools Version