The Irish government is supporting businesses by temporarily reducing the VAT rate from 23% to 21%. This reduced rate is applicable from 1 September 2020 to 28 February 2021 (unless the end date is extended by the Irish government).
As of 1 September 2020, QuickBooks has updated the tax codes affected; full details of these codes are provided below. For a limited subset of customers, transactions entered in QuickBooks between 1 September 2020 and 23 September 2020 resulted in entries using the original rate of 23%, rather than the reduced rate. The entries are limited to the following tax codes:
- RCS - for services bought from suppliers in the EU, where a reverse charge applies at the standard rate
- RCG - for goods bought from suppliers in the EU, where a reverse charge applies at the standard rate
- RCG – R - purchases for resale from the EU where reverse charge applies at the standard rate
- Standard – R - purchases for resale at the standard rate.
If you entered transactions in QuickBooks between 1 September 2020 and 23 September 2020 using any of the above tax codes, please review your transactions to ensure they reflect the temporarily reduced rate by following these steps:
Step 1: Get a VAT Detail Report
- Go to the Reports menu.
- Enter VAT Detail Report in the search field. You can also browse for reports in the Reports menu.
Step 2: Customise your report
- In the Report period dropdown, select the length of time you want to see.
- In the date field, select 01-Sep-2020 as the start date.
- In the Accounting method section, select Accrual.
- Select Run report.
Step 3: View transactions
- Click on a transaction to open it.
- If the tax charged was incorrectly recorded as 23%, reselect the tax code and it will reflect the 21% rate.
- Select Save and close.
- If the supplier changed a 23% rate, consult with the supplier and/or with your bookkeeper or accountant on the best way to handle this transaction.