I am advised by the Revenue Commissioners that the legislative provisions for the payment of VAT as set out in the Value-Added Tax Consolidation Act 2010 is subject to the requirements of EU VAT law with which Irish VAT law must comply. The general position is that the VAT Directive defines a supply for VAT purposes, the time of supply and when the tax authority becomes entitled under law to claim the tax. Section 76 of the VAT Consolidation Act requires a trader to furnish a return with the appropriate remittance to the Collector-General within 19 days of the month immediately following a taxable period but section 78 of the Act extends this period to 23 days in the case of electronic remittances and returns.
Section 80 of the VAT Consolidation Act allows a VAT-registered person to opt to account for VAT by reference to the amount of money which the person receives where:
the person's supplies of goods or services are almost exclusively (at least 90%) made to unregistered persons. This would apply in practice mainly to retail outlets, public houses, restaurants, hairdressers and any similar type of business, or
the person's annual turnover (exclusive of VAT) does not exceed or is not likely to exceed €1,000,000 a year.
Two thirds of registered VAT traders avail of this option and therefore account for and pay VAT to Revenue only on their cash receipts.
In the event that exceptional or once off factors giving rise to tax payment difficulties arise for otherwise viable businesses, they are encouraged to be proactive in approaching Revenue on how those factors will be overcome and timely compliance quickly restored. Revenue has published extensive information on its website on the matter of handling tax payment difficulties.