Accounting for VAT on moneys received

Moneys received basis eligibility and cancellation

You should notify Revenue if your circumstances change so that you are no longer eligible to account for Value-Added Tax (VAT) on the moneys received basis.

If your eligibility ceases because your turnover from taxable supplies to unregistered persons is less than 90% of your total turnover during a period of four consecutive months, you should notify Revenue of this change. You should do this by the end of the month following that period, indicating the percentage of your supplies to unregistered persons during the period.

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

If your eligibility ceases because your turnover is likely to exceed €2 million in any continuous 12-month period, you should notify Revenue of the increase in turnover. This likelihood should be determined based on your turnover in any period of four consecutive months. You should notify Revenue of the change in circumstances by the end of the month following this period.

If you fail to notify your Revenue office, in either of the above circumstances, the authorisation will be deemed to be cancelled from the start of the VAT period within which the notification should have been made.

Otherwise 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.