Accounting for VAT on moneys received

Moneys received basis eligibility and cancellation

Moneys received basis eligibility

You should notify Revenue if your turnover from taxable supplies to unregistered persons for four consecutive months is less than 90% of your total turnover. You should do this by the end of the following month and indicate the actual percentage of such supplies.

If the change in the percentage is of a marginal or temporary nature, the authorisation may be allowed to continue.

Moneys received basis cancellation

You must apply to have the authorisation cancelled where it is clear that your annual turnover will exceed €2 million in any continuous 12-month period. This applies if you are already on the moneys received basis because your annual turnover was less than €2 million.

If you fail to notify your Revenue office, the authorisation will be cancelled from the start of the Value-Added Tax (VAT) period within which the notification should have been made.

Cancellation of an authorisation will have effect from either :

  • the start of the VAT accounting period when you are notified of such cancellation by your Revenue office
  • or
  • from the start of a later VAT accounting period, if specified in the notice.