VAT3
Encyclopedia
A VAT 3 is a form
filed in every two months by companies, businesses and Sole Traders in the Republic of Ireland
who are registered for Value Added Tax
(VAT).
The Form is fairly easy to understand and contains 6 boxes.
T1, T2, T3, T4, E1 and E2 are the titles of each of the boxes.
on Sales (T1) is higher than the Total amount of domestic VAT
on purchases (T2). This figure is the total Net
payable to the Irish Revenue Commissioners, that is, the amount of VAT the business
will be paying to the Revenue Commissioners.
If T2 exceeds T1 a Nil
figure can be placed in this box.
on purchases (T2) is higher than the Total amount of domestic VAT
on Sale
s (T1). This figure is the total Net repayable from the Irish
Revenue Commissioners, that is, the amount of VAT the business
will be receiving from the Revenue Commissioners. Usually companies making a Refund claim will be asked to provide Proofs of their Purchases, usually invoice
s, bills
, etc.
If T1 exceeds T2 a Nil
figure can be placed in this box.
es who are trading, that is import
ing and export
ing goods and/or services, with other EU countries and states. As no VAT
is liable for 'Intra-Community' transactions these boxes are merely there for observational and statistical purposes.
The figure entered into E1 is the total amount made on sales going to other nations or states within the E.U. That is, the amount the business is receiving on EU exports.
The figure entered into E2 is the total amount paid on purchases from other nations or states within the E.U. That is, the amount the business is spending on EU imports.
system, and VAT 3's can be filed online as such, but they can still be filed on the traditional and recognisable green paper.
Tax form
A tax form is a blank document or template supplied by a government for use in the reporting of tax information to the government or to potential taxpayers...
filed in every two months by companies, businesses and Sole Traders in the Republic of Ireland
Republic of Ireland
Ireland , described as the Republic of Ireland , is a sovereign state in Europe occupying approximately five-sixths of the island of the same name. Its capital is Dublin. Ireland, which had a population of 4.58 million in 2011, is a constitutional republic governed as a parliamentary democracy,...
who are registered for Value Added Tax
Value added tax
A value added tax or value-added tax is a form of consumption tax. From the perspective of the buyer, it is a tax on the purchase price. From that of the seller, it is a tax only on the "value added" to a product, material or service, from an accounting point of view, by this stage of its...
(VAT).
The Form is fairly easy to understand and contains 6 boxes.
T1, T2, T3, T4, E1 and E2 are the titles of each of the boxes.
T1
The figure entered into T1 is the total amount of VAT the business has received on the sales they have made.T2
The figure entered into T2 is the total amount of VAT the business has paid on the Purchases they have made.T3
T3 is only to be filled out if the total amount of domestic VATVat
Vat or VAT may refer to:* A type of container such as a barrel, storage tank, or tub, often constructed of welded sheet stainless steel, and used for holding, storing, and processing liquids such as milk, wine, and beer...
on Sales (T1) is higher than the Total amount of domestic VAT
Vat
Vat or VAT may refer to:* A type of container such as a barrel, storage tank, or tub, often constructed of welded sheet stainless steel, and used for holding, storing, and processing liquids such as milk, wine, and beer...
on purchases (T2). This figure is the total Net
Net profit
Net profit or net revenue is a measure of the profitability of a venture after accounting for all costs. In a survey of nearly 200 senior marketing managers, 91 percent responded that they found the "net profit" metric very useful...
payable to the Irish Revenue Commissioners, that is, the amount of VAT the business
Business
A business is an organization engaged in the trade of goods, services, or both to consumers. Businesses are predominant in capitalist economies, where most of them are privately owned and administered to earn profit to increase the wealth of their owners. Businesses may also be not-for-profit...
will be paying to the Revenue Commissioners.
If T2 exceeds T1 a Nil
Nil
Nil is a word commonly used to mean nothing or zero; it is one of several names for the number 0.It may also refer to:- Computer programming :...
figure can be placed in this box.
T4
T4 is only to be filled out if the total amount of VATVat
Vat or VAT may refer to:* A type of container such as a barrel, storage tank, or tub, often constructed of welded sheet stainless steel, and used for holding, storing, and processing liquids such as milk, wine, and beer...
on purchases (T2) is higher than the Total amount of domestic VAT
Vat
Vat or VAT may refer to:* A type of container such as a barrel, storage tank, or tub, often constructed of welded sheet stainless steel, and used for holding, storing, and processing liquids such as milk, wine, and beer...
on Sale
Sales
A sale is the act of selling a product or service in return for money or other compensation. It is an act of completion of a commercial activity....
s (T1). This figure is the total Net repayable from the Irish
Ireland
Ireland is an island to the northwest of continental Europe. It is the third-largest island in Europe and the twentieth-largest island on Earth...
Revenue Commissioners, that is, the amount of VAT the business
Business
A business is an organization engaged in the trade of goods, services, or both to consumers. Businesses are predominant in capitalist economies, where most of them are privately owned and administered to earn profit to increase the wealth of their owners. Businesses may also be not-for-profit...
will be receiving from the Revenue Commissioners. Usually companies making a Refund claim will be asked to provide Proofs of their Purchases, usually invoice
Invoice
An invoice or bill is a commercial document issued by a seller to the buyer, indicating the products, quantities, and agreed prices for products or services the seller has provided the buyer. An invoice indicates the buyer must pay the seller, according to the payment terms...
s, bills
Bill (payment)
A bill or invoice is a document requesting payment for an order previously supplied. Presentation of a bill is common practice on the part of credit card companies, utilities, and other service providers...
, etc.
If T1 exceeds T2 a Nil
Nil
Nil is a word commonly used to mean nothing or zero; it is one of several names for the number 0.It may also refer to:- Computer programming :...
figure can be placed in this box.
E1 and E2
These boxes are only to be filled out by businessBusiness
A business is an organization engaged in the trade of goods, services, or both to consumers. Businesses are predominant in capitalist economies, where most of them are privately owned and administered to earn profit to increase the wealth of their owners. Businesses may also be not-for-profit...
es who are trading, that is import
Import
The term import is derived from the conceptual meaning as to bring in the goods and services into the port of a country. The buyer of such goods and services is referred to an "importer" who is based in the country of import whereas the overseas based seller is referred to as an "exporter". Thus...
ing and export
Export
The term export is derived from the conceptual meaning as to ship the goods and services out of the port of a country. The seller of such goods and services is referred to as an "exporter" who is based in the country of export whereas the overseas based buyer is referred to as an "importer"...
ing goods and/or services, with other EU countries and states. As no VAT
Vat
Vat or VAT may refer to:* A type of container such as a barrel, storage tank, or tub, often constructed of welded sheet stainless steel, and used for holding, storing, and processing liquids such as milk, wine, and beer...
is liable for 'Intra-Community' transactions these boxes are merely there for observational and statistical purposes.
The figure entered into E1 is the total amount made on sales going to other nations or states within the E.U. That is, the amount the business is receiving on EU exports.
The figure entered into E2 is the total amount paid on purchases from other nations or states within the E.U. That is, the amount the business is spending on EU imports.
Electronic or Paper
The Irish Revenue Commissioners are heavily promoting their new Revenue On-Line ServiceRevenue On-Line Service
The Revenue On-Line Service , is a pioneer in European internet applications, and it is run by Revenue in the Republic of Ireland. The ROS system allows companies and other business concerns who are liable for tax in the Republic of Ireland to file certain Tax Returns online using a Secure Site...
system, and VAT 3's can be filed online as such, but they can still be filed on the traditional and recognisable green paper.