VAT RTD (Return of Trading Details) Explained

Understanding business taxation and staying compliant with tax regulations is crucial for a business owner for smooth business operations. The VAT RTD (Return of Trading Details) is one of the most essential components of tax obligations for VAT-registered companies and businesses.

This report highlights the trading activity of any company that they submit to the tax authorities to ensure their compliance with tax laws. In this guide, we will learn what is VAT RTD, and how you can create and submit a VAT RTD report.

VAT RTD

A VAT RTD (return of trading details) is a statistical return that assembles the sales and purchase values inclusive of VAT, that were included in the periodic VAT returns for the accounting period. Some information is necessary which is gathered by the following four questions

• Have you made supplies of goods or services?
• Did you acquire any goods or services from the European Union, including Northern Ireland?
• Did you purchase goods or services for resale?
• Did you purchase goods or services that are not for resale but where VAT paid on them can be claimed as an input credit?

There is no need to pay VAT liability upon the submission of the VAT return as RTD is a statistical return. In fact, the RTD acts as an auditing instrument, allowing Revenue to ensure that your monthly VAT returns filed during the accounting period are accurate.

How to Create an RTD Report?

If you have not done this before, do not worry follow the steps below to make an RTD report. Let’s discuss the steps without any due:

• Go to the report by signing in to Quickbook account.
• Now search for the return of trading details report in the search engine or you can even browse for the reports in the list which appears on the reports page.
• Choose the report period and accounting method.
• Choose the run report option.

In the Mixed Mode RTD Report, QuickBooks applies the cash basis for sales transactions while using the Accrual basis for purchase transactions. The RTD report you get is split into 4 parts which are

• Sales data,
• Acquisitions from EU
• Purchases for resale,
• Other deductible goods and services

VAT Return Dates

VAT return dates for the submission of VAT return and paying are generally 1 month and 7 days after the end of the VAT accounting period. The VAT return covers an accounting period that lasts three months.

Submission of VAT Return Ireland

VAT-registered businesses must submit their VAT returns electronically via online banking. Exceptions can be made in certain scenarios, but HMRC approval is required first.

For submitting the VAT return online businesses need to sign up for HMRC’s VAT online service for submitting returns electronically. If an agent is responsible for completing and submitting a business’s VAT returns, then the agent must also register for HMRC’s VAT online service.

How to Make VAT Payments?

Are you wondering how you will make VAT payments? You can seek help from the steps given below:

You should make payment electronically by using online banking, CHAPS, or BACS. I usually make it through CHAPS because HMRC does not consider cheques or postal orders for online VAT returns.

Make sure that the cleared funds must be in HMRC’s bank account before the deadline. If the deadline falls on a weekend or bank holiday, then the payment must be cleared in HMRC’s account by the last business day before the due date.

Penalty for Late VAT Return Ireland

There is a penalty for late VAT return suppose if you fail to submit your VAT return on time then HMRC will consider you as a default. In this scenario, you may need to pay a surcharge along with your VAT due. The amount of the surcharge will depend upon how many times you have been considered default within twelve months.

There will be no surcharge for the first occurrence of the default but the amount of surcharge will increase if there were consistency in the default. The amount will be based on the frequency of late submissions or payments. Prompt filing and payment are necessary to prevent these extra costs and ensure adherence to VAT regulations.

The VAT RTD is crucial to ensure your company’s financial transparency and compliance with Ireland’s taxation system. This report highlights the VAT collected and paid through the business to avoid legal issues and penalties. You can take help from this guide to learn how to create a VAT RTD report and submit it to the authorities on time to maintain the financial integrity of your business and oblige to VAT regulations.