Article

E-Invoicing in Ireland

23 March 2023

Ensuring Compliance

Looking to streamline your invoicing process, boost your cash flow, and reduce your carbon footprint? This article gives you a bird’s eye overview of e-invoicing in Ireland.

E-Invoicing in Ireland: A Quick Overview

E-Invoicing/CTC Model

  • Post Audit

Mandatory Infrastructure

  • B2G: Peppol
  • B2B: Not Applicable

Mandatory e-Invoice Format

  • B2G: Peppol BIS
  • B2B: N/A

Issuing mandate

B2B: No Clear-cut Requirements

Receiving mandate

  • B2G: All Contracting Authorities
  • B2B: Buyer Has to Give Consent

Digital Signature

Not required

Archiving Abroad

Allowed under specific conditions

Archiving Period

6 Years

E-Invoicing Standards in Ireland

There are multiple e-invoice standards in Ireland.

These standards ensure that e-invoices are structured and presented in a way that is consistent and easily processed by both the supplier and the recipient.

The two main e-invoicing standards used in Ireland are:

The Irish Revenue Commissioners accept UBL 2.1 as the standard for e-invoicing in Ireland.

EDIFACT is an international standard for electronic data interchange between different computer systems.

It is commonly used for exchanging business documents such as invoices, purchase orders, and delivery notes.

The Irish Revenue Commissioners accept EDIFACT as a standard for e-invoicing in Ireland.

In addition to these standards, the Irish Revenue Commissioners have established specific requirements for e-invoicing in Ireland. These requirements include:

  • Electronic invoices must be sent and received in a structured electronic format, such as UBL or EDIFACT.
  • Electronic invoices must contain certain mandatory information, including the name and address of the supplier and recipient, a unique invoice number, and the invoice date.
  • Electronic invoices must be signed and stored in a secure and accessible manner.

Compliance with these e-invoicing standards and requirements is mandatory for businesses in Ireland. Failure to comply may result in penalties and fines.

How to Send and Receive e-invoices in Ireland

To send and receive compliant e-invoices in Ireland, businesses need to follow the guidelines set by the Irish Revenue Commissioners.

Here are the steps to send and receive compliant e-invoices:

Sending E-invoices in Ireland

  • Use a structured electronic format: You must send electronic invoices in a structured electronic format, such as UBL or EDIFACT.
  • Include mandatory information: All e-invoices must contain certain mandatory information, including the name and address of the supplier and recipient, a unique invoice number, and the date of the invoice.
  • Sign the invoice: Electronic invoices in Ireland must be signed using a digital signature that meets the legal requirements of the eIDAS Regulation.
  • Store the invoice securely: E-invoices must be stored securely and be accessible for audit purposes for up to six years.

Receiving E-invoices in Ireland

To receive e-invoices in Ireland, ensure your system can receive structured electronic invoices.

Further, your accounting or EPR system must be able to receive structured electronic invoices, such as UBL or EDIFACT. In addition,

  • Verify the e-invoice: Ensure that the e-invoice contains all the mandatory information and matches the goods or services provided.
  • Store the e-invoice securely: Store the e-invoice securely and ensure it is accessible for audit purposes for up to six years.
  • Reconcile the e-invoice with your accounts: Ensure that the e-invoice is correctly recorded in your accounts and that the amount matches the payment made.

Businesses can also use PEPPOL to send and receive compliant e-invoices in Ireland.

To use PEPPOL, businesses must register with a PEPPOL Access Point provider like Unimaze and ensure that their accounting or invoicing system is compatible with PEPPOL.

Sending and receiving compliant e-invoices in Ireland requires businesses to follow the guidelines set by the Irish Revenue Commissioners and ensure that their accounting or invoicing systems can handle structured electronic invoices

Using a PEPPOL Access Point like Unimaze can also help businesses streamline their e-invoicing processes and ensure compliance with the relevant standards and regulations.

Key Takeaway

Ireland e-Invoicing Compliance Regulations

In Ireland, the Irish Revenue Commissioners primarily set the regulations related to e-invoicing compliance. Here are the main regulations businesses must comply with when sending or receiving e-invoices in Ireland:

Structured electronic format: E-invoices must be sent and received in a structured electronic format, such as UBL or EDIFACT.

  • Mandatory information: E-invoices must contain certain mandatory information, including the name and address of the supplier and recipient, a unique invoice number, and the date of the invoice.
  • Electronic signature: E-invoices must be signed using an electronic signature that meets the legal requirements of the eIDAS Regulation.
  • Storage requirements: E-invoices must be stored securely and be accessible for audit purposes for up to six years.
  • VAT compliance: E-invoices must comply with VAT regulations, including the correct VAT rate and amount.
  • Archiving: Businesses must ensure that their e-invoices are archived and backed up in a secure and accessible manner.
  • PEPPOL compliance: Businesses that use PEPPOL to send and receive e-invoices must comply with the relevant PEPPOL standards and guidelines.

Because failing to comply with these regulations may result in penalties and fines, businesses must ensure that their e-invoicing processes and systems comply with the relevant regulations and standards.

It is worth noting that Ireland's regulations related to e-invoicing compliance are subject to change. Businesses should keep up-to-date with any updates or changes to ensure continued compliance.

How to get Started with Peppol e-Invoicing in Ireland

To get started with PEPPOL e-invoicing in Ireland, businesses need to follow these steps:

  • Team Up with a PEPPOL Access Point provider in Ireland like Unimaze: Businesses must first register with a PEPPOL Access Point provider to connect to the PEPPOL network.
  • Ensure Compatibility: Businesses should ensure that their invoicing or accounting software is compatible with PEPPOL.

Most modern accounting software packages are PEPPOL-ready, but businesses should check with their software provider to confirm compatibility.

Unimaze offers e-invoicing solutions that can integrate with your accounting system or ERP without the need to upgrade it.

  • Set up an Account: Once registered with a PEPPOL Access Point provider, Unimaze will provide you with an account to send and receive e-invoices through the PEPPOL network.
  • Test the System: Businesses should test their PEPPOL e-invoicing system to ensure that it works correctly and that e-invoices are being sent and received as expected.
  • Begin using the System: Businesses can use the PEPPOL e-invoicing system to send and receive invoices once the system is tested and working correctly.

Using PEPPOL e-invoicing in Ireland offers several benefits, including faster payment processing, improved accuracy, and increased efficiency.

By following the steps outlined above, businesses can get started with PEPPOL e-invoicing and enjoy the benefits of this streamlined and efficient invoicing system.

Unimaze: Helping Become Complaint with e-Invoicing Regulations in Ireland

Unimaze offers unique e-invoicing solutions that help businesses streamline invoicing processes and ensure compliance with e-invoicing regulations.

Here are some ways that Unimaze can help businesses become compliant with e-invoicing regulations in Ireland:

  1. Automated Invoicing: Unimaze offers a fully automated invoicing system that eliminates manual invoicing. That way, businesses in Ireland can generate and send invoices automatically, reducing errors and saving time.
  2. E-invoice Validation: Unimaze's e-invoice validation feature ensures that all e-invoices generated comply with the legal requirements set by the Irish government. That way, businesses in Ireland are not at risk of fines or penalties for non-compliance.
  3. Secure e-Invoicing: Unimaze's e-invoicing platform is secure and ensures that all invoices are transmitted and received safely. Businesses in Ireland can be confident that their invoices are secure and protected from fraud.
  4. Seamless Integration: Unimaze's e-invoicing solutions can be seamlessly integrated with existing accounting systems, making it easy for businesses to transition to e-invoicing without disrupting existing processes.
  5. Real-Time Monitoring: Unimaze cloud-based solutions allow real-time monitoring of e-invoicing processes, giving you insights into your invoicing operations. That way, you can identify issues and improve your invoicing processes in real-time.

Ready to get started with e-invoicing in Ireland? Book a meeting with one of our experts today to discuss how our solutions can benefit your business.

Electronic Invoicing in Ireland: FAQs

How do I invoice in Ireland?

To invoice in Ireland, follow these steps:

  • Include your business information: At the top of your invoice, include your business name, address, and contact information.
  • Add the customer information: Include the name and address of the customer you are invoicing.
  • Create an invoice number: Assign a unique number to each invoice for record-keeping purposes.
  • Include a description of the goods or services: List the items or services you provided to the customer, along with their corresponding prices and quantities.
  • Specify the payment terms: Outline the payment due date, any late fees, and the accepted payment methods.
  • Add VAT information: If your business is registered for Value-Added Tax (VAT), including the VAT registration number and the applicable VAT rate for the goods or services provided.
  • Provide a total amount due: Calculate the total amount due, including any taxes or fees.
  • Send the invoice: Send your invoice customer once you have created it.

It’d be best to keep a copy of the invoice for your records. Additionally, consider using e-invoicing software to streamline the process and easily track your invoices.

What is the Rate of VAT in Ireland?

The standard rate of VAT in Ireland is currently 23%. This applies to most goods and services, including imports, sales, and leases. However, certain goods and services may be subject to reduced rates of VAT, such as:

  • 13.5% VAT rate: This applies to goods and services such as certain fuels, electricity, building services, and renovations of residential property.
  • 9% VAT rate: This applies to certain goods and services in the hospitality industry, such as hotel accommodation, restaurant meals, and entertainment services.
  • 0% VAT rate: This applies to certain goods and services, such as food and drinks, books, newspapers, and medical equipment.

Note: you must charge VAT on your sales, where applicable if your business is registered for VAT in Ireland. You can also claim back VAT on your business expenses.

If you're unsure whether your goods or services are subject to VAT or which rate of VAT applies, you should consult a tax advisor or the Irish Revenue Commissioners for guidance.

Is Ireland Part of EU VAT?

Yes, Ireland is part of the European Union (EU) VAT system. Ireland must adhere to the EU's VAT rules and regulations as an EU member state.

By extension, Irish businesses must charge VAT on selling goods and services where applicable and comply with EU VAT reporting requirements.

Additionally, businesses in Ireland that trade with other EU member states must comply with EU VAT rules for intra-community transactions.

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