VIES Return

VIES is the VAT Information Exchange System. It is a system used by EU member countries to prevent VAT fraud. It is to try and ensure when only trade between VAT registered EU businesses are not charged VAT and to ensure that sales to non-VAT registered businesses or individuals are charged VAT.

From 1st January 2010, VIES Returns must include the sale of services as well as goods. It applies only to exports within E.U. by VAT registered traders in Ireland supplying goods to VAT registered traders in other E.U. member states without charging Irish VAT must complete a VIES return for Revenue. No thresholds are involved and all such supplies must be reported.

In 2011 there were two important changes to the VIES arrangements;

For supplies of Business to Business (B2B) services, the place of taxation is the place where the recipient is established (reverse charge). For supplies of Business to Consumer (B2C) services, the place of taxation is where the supplier is established.

Monthly filling of VIES returns for certain categories of traders.

General rules:

Country of establishment of supplier

Country in which customer established

Status of Customer

Place of supply

Person liable to account for Irish VAT

Ireland

Other EU State

Business

Other EU State

No Irish VAT

Ireland

Other EU State

Private

Ireland

Supplier

Ireland

Outside EU

Business

Outside EU

No Irish VAT

Ireland

Outside EU

Private

Depends on the nature of the Service

Supplier (if VAT occurs)

Other EU State

Ireland

Business

Ireland

Business Customer

Other EU State

Ireland

Private

Other EU State

No Irish VAT

Outside EU

Ireland

Business

Ireland

Business Customers

Outside EU

Ireland

Private

Depends on the nature of the Services

Depends on the nature of the Service-if taxable in the State-the supplier

For more information please see this page on the Revenue Commissioners website: http://www.revenue.ie/en/tax/vat/leaflets/place-of-supply-of-services.html

Sage 50 Accounts 2011 and 2012 are automatically configured to report on VIES.

Note: If you have Sage Accounts 2009 or 2010 you must install the VIES update which can be found here http://sage.ie/support/accounts-support/downloads/vat-downloads.aspx

For instructions on how VIES operates in Sage 50 please click here.

For further information on VIES please see the Revenue Commissioners website:

Web: http://www.revenue.ie/en/customs/businesses/vies-intrastat.html

Email: vies@revenue.ie 

Tel: Lo call 1890 251 010 
or from abroad telephone +353 42 9353300

If you are interested to in buying a Sage Support Contract call us on 1890 88 25 22.

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