VIES Explained: VAT Information Exchange System in Ireland

What is VIES ?

VIES is an additional VAT reporting requirement where registered traders involved in the supply of goods and services in the Intra-EU community are required to submit the information of these supplies to Revenue.

VIES allows traders to verify the VAT registration numbers of their customers in other EU Member States, ensuring the validity of quoted VAT numbers. This system is exclusively applicable to intra-EU trade.

The key function of this reporting requirement is to track VAT-exempt sales of goods and services between EU member states ensuring compliance.

 

In what circumstances does VIES apply ?

VIES applies in scenarios where an Irish registered trader has supplied goods or services to a customer within the European Union and where the customer has a valid VAT number.

What is the rate of VIES ?

Irish VAT registered traders who supply goods or services at the zero VAT rate to another VAT registered trader in another EU Member State must submit a VIES statement to the Revenue authorities.

How does VIES operate ?

The total value of invoiced goods or services, net of any credit notes must be reported to Revenue in a VIES submission. Intra-community supply of goods to VAT – registered business in another EU country must be included in a VIES report along with certain cross-border services provided to VAT-registered businesses. VIES reports also takes into account triangulation where an Irish VAT registered trader acts as an intermediary between two other VAT registered traders in other member states during a transaction.

How might VIES impact my business ?

The submission of VIES reports to Revenue ensures compliance with EU VAT regulations and aids in preventing and identifying fraudulent transactions which may negatively impact a trader’s business. There are also fixed penalties set out by the tax authorities for failure to comply with the VIES requirement.

Failure to submit a quarterly statement of intra-EU supplies can result in a fine of up to €4,000 being owed to the Revenue Commissioners.

What are my filing obligations and deadlines ?

Irish VAT-registered traders are required to submit VIES on a quarterly or monthly basis depending on the contents of the supply

• Where the value of the supply of goods exceeds the quarterly threshold of €50,000, VIES are then required to be submitted in each by the 23rd day of each calendar month.
• Where the estimated supply of goods is under €50,000 per quarter, then the trader can opt to submit quarterly returns by the 23rd day of the month following the quarter end.
• Where a service is supplied, the supplier can opt to file either quarterly or monthly statements by the 23rd day following the quarter end or monthly end.
• Where a supplier makes no intra-EU supplies in a given period, a nil return must be submitted for that period.

How can Nathan Trust Help?

We can assist you with:

• Registering for Intra EU in Ireland
• Preparing and filing VIES returns to Revenue