Accounting for VAT on moneys received

How do you apply for the moneys received basis?

If you are applying for Value-Added Tax (VAT) registration for the first time, you should indicate in the appropriate box on the registration form that you wish to use the moneys received basis. It is important that you meet the conditions outlined in this section to use the money received basis.

If you are already registered for VAT, you must apply to your Revenue office in writing to change to the moneys received basis.

Your application to use the moneys received basis should include the following details:

  • name and address
  • VAT registration number, where appropriate
  • the nature of your business activities
  • the percentage of turnover from taxable supplies, if any, which related to supplies to unregistered persons for whichever of the following periods is the shorter:
    • the period of 12 months ended on the last day of the taxable period prior to the application
    • or
    • the period from the commencement of business activities to the last day of the taxable period prior to the application.
  • an estimate of the percentage of the turnover from taxable supplies to unregistered persons for the 12 months from the start of the taxable period during which the application is made
  • level of annual turnover, if under €2,000,000.

An authorisation to account for VAT on the moneys received basis has effect from the start of the period during which it is given, or from a subsequent date, if so specified.

Next: Changing to and from the moneys received basis