Guides an AI agent through the full Irish VAT compliance cycle: registration check, transaction classification (T1/T2/T3/T4/E1/E2), VAT3 preparation and ROS submission, and year-end RTD preparation. Covers domestic rates (23%/13.5%/9%/4.8%/0%), Section 59 blocked inputs, reverse charge on EU and non-EU services, and cash-basis elections.
Confirm the client is VAT-registered with Revenue Commissioners, establish the taxable period (bi-monthly is most common; annual and quarterly also exist), retrieve the VAT registration number (IE format, e.g. IE1234567T), and identify any special elections in force — cash basis (Moneys Received basis) if turnover is below EUR 2 million, or VAT group membership. Any group or Capital Goods Scheme involvement triggers an immediate out-of-scope refusal.
Process the client's bank statement(s) and any invoices for the period. Classify every line into T1 (output VAT on sales), T2 (VAT on EU goods acquisitions), T3 (import VAT), T4 (deductible input VAT on purchases), E1 (EU B2B service/goods sales), or E2 (EU acquisitions value), or EXCLUDE. Apply Section 59 VATCA 2010 blocks for motor vehicles, petrol, and entertainment. Self-account reverse charge at 23% for EU and non-EU B2B services received (adds to both T1 and T4). Flag ambiguous lines for client confirmation before proceeding.
Aggregate the classified totals into the four VAT3 boxes: T1 (total output VAT), T2 (VAT on EU acquisitions of goods), T3 (VAT on imports), T4 (total deductible input VAT). Compute the net VAT payable (T1 + T2 + T3 − T4) or repayable. Cross-check against prior period returns for reasonableness. If cash basis applies, ensure only received/paid amounts are included. Prepare a draft VAT3 for client sign-off before lodging via ROS (Revenue Online Service).
Lodge the approved VAT3 via ROS (Revenue Online Service) before the filing deadline — the 23rd of the month following the end of the taxable period for online filers (e.g. 23 March for the January–February period). If a VAT payment is due, confirm direct debit or ROS debit instruction is in place. Obtain and retain the ROS submission receipt. If a repayment is claimed, note the standard 21-day processing window.
At the end of the VAT year (usually the December or last period), prepare the RTD (Return of Trading Details) summarising sales and purchases across six categories: goods at standard rate, goods at reduced/zero rate, services at standard rate, services at reduced/zero rate, exempt supplies, and non-deductible purchases. The RTD must reconcile with the sum of all VAT3 returns filed during the year. It is lodged via ROS alongside or shortly after the final VAT3.
Run this workflow in your AI agent
Install the MCP connector once — your agent loads the right skills, works through each phase, and routes to a licensed Ireland accountant for review.