Value Added Tax Consolidation Act 2010 section 80

Tax due on moneys received basis

Section 80 sets out the conditions under which a trader may be authorised to account for VAT on the moneys received (cash receipts) basis rather than the invoice basis.

• A trader may use the cash receipts basis if at least 90 per cent of turnover derives from supplies to unregistered persons, or if total annual turnover does not exceed €2,000,000 in any continuous 12-month period.
• Where a trader switches to the cash basis, the VAT rate applicable is the rate in force at the time of supply; VAT already accounted for under the invoice basis is not due again, and supplies that were not liable to VAT before the switch do not become liable afterwards.
• Revenue may cancel a cash basis authorisation and may by regulation exclude specified categories of supply from the cash basis; the Minister may by order increase the €2,000,000 turnover threshold.
• The cash basis does not apply to the VAT element of a discount where the supplier fails to issue the required credit note, and does not apply to tax on imports or intra-Community acquisitions.