Change to Vat 3 Form - Exceptional Expenditure

In the past, if you had a large reclaim of VAT due from revenue (due to an unusually high amount of purchases, one off large expenses or a change in the nature of your business), revenue held the repayment due and requested the information to support the large reclaim. 

The Irish Revenue have now updated the VAT 3 form to seek additional information when filing a VAT return. The changes should hopefully enable businesses to obtain VAT refunds quicker as details of exceptional items are flagged to Revenue at the filing stage.


VAT 3 (revised)


Now included on the form is a section to indicate if the VAT on purchases includes any unusual expenditure  which has resulted in an unusually large VAT on purchases claim in the VAT period. 


VAT 3 (Unusual Expenditure)

Examples of items which may result in an unusual level of VAT on purchases suggested by revenue are the purchase of vehicles, fittings, equipment, plant and machinery or property, ICT equipment or software, franchise license, etc.

Revenue indicate that "Advance notification/submission of information may minimise any delays in processing of your claim. Supporting documentation may be requested by Revenue"

Where a tax payer indicates that there was exceptional expenditure then they are promoted to provide additional information :

VAT 3 Exceptional Expenditure box

As revenue are seeking the FULL detail of these large invoices at filing stage of the VAT return, therefore, you will need these invoices to hand when you are filing your VAT return on ROS or if the return is prepared by your tax agent (accountant) you will need to provide them copies of the invoices BEFORE they file your VAT return.

Other changes to the VAT return is at the submission stage where red font is added to remind taxpayers that submission of a false VAT return is an offence under the Tax Acts. The fine for assisting in making an incorrect VAT return is €4,000. (Not for the faint-hearted!)

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