Postponed Accounting for VAT in Ireland: Your Guide to Smarter Import VAT

What is postponed accounting? 

Postponed Accounting for VAT lets businesses delay paying import VAT and instead include it in their VAT return (VAT3). This means:

• You don’t have to pay VAT upfront when goods arrive.

• You declare and reclaim the VAT at the same time in your VAT return.

• It’s only for businesses that are registered for VAT and Customs.

• It applies to goods imported from outside the EU, including Great Britain (but not Northern Ireland).

• You must be able to prove to Revenue that you qualify.

Who needs to register for postponed accounting in Ireland? 

Any VAT-registered trader who imports from outside the EU can apply for postponed accounting to enable them to reduce their VAT liability by accounting for both sides at the same time.

How might postponed accounting impact my business?

By being registered for postponed accounting, it will help to ease cash flow burdens in the company from one period to the next.

What are the filing obligations and deadlines? 

The VAT should be accounted for upon receipt of the goods into Ireland and included in the respective VAT return by the 23^rd of the month following the VAT period.

How can Nathan Trust help?                      

We can assist you by:

• Liaising with revenue for approval on your behalf

• Guide the respective obligations and necessary filings.

• Prepare the VAT3 return on your behalf.

• Submit to revenue.