For the most part bi-monthly returns are required. These must be made using the VAT 3 return form.

Other reporting periods may be applicable. For example, businesses with an annual VAT liability of less than EUR3,000 are required to submit six-monthly returns and businesses with a VAT liability between EUR3,001 and EUR14,400 are assigned a four-monthly return period.

Businesses with a bi-monthly VAT liability of less than EUR50,000 may opt to make payments of VAT by monthly direct debit. In this case only a single annual VAT return is required. If there is a shortfall in VAT the balance should be paid when submitting the end-of-year (annual) VAT 3 return form.

In addition, all traders are required to complete an annual Return of Trading Details (RTD) form detailing purchases and sales, by VAT rate, for the year.

As well as declaring the Irish VAT on any sales, the VAT return also allows for the listing of VAT on purchases (inputs) that can be offset against the sales VAT due. Excess input VAT will be refunded after a VAT return has been submitted. However, supporting documentation may be required by the Revenue Commissioners. Items which may not be deducted include:

• food, drink and accommodation expenditure
• certain motor vehicles
• entertainment expenses
• petrol purchases or imports (other than as stock-in-trade)