Irish Cash Accounting - are you paying too much VAT?

Cash accounting for VAT in Ireland is different from the UK. In the UK cash accounting applies to both sales tax (the VAT you charge) and Purchase tax (the vat you are charged).

However, in Ireland it only applies to sales tax.

Some accountancy software - including some older versions of Sage - always apply cash accounting to both sales and purchase tax. This means that you are waiting until you pay your suppliers before you claim the VAT back rather than when the supplier invoices you.

For details on Irish cash accounting see the Irish Revenue Site - Moneys Received Basis Of Accounting.

Fusion accounts allows businesses to specify weather they wish to use Supplier and/or Customer cash accounting. It also supports multiple VAT registrations for international traders.