VAT Return of Trading Details (RTD) in Ireland: What It Is, Why It Matters, and How to Get It Right

Most VAT-registered businesses in Ireland file their bi-monthly or quarterly VAT returns without much difficulty. Then once a year, a notification appears on ROS for something called the VAT Return of Trading Details, and the questions start. What is it? How is it different from the VAT3? What figures go where? And what happens if I get it wrong?

The RTD is an annual return that breaks down your trading activity by VAT rate. It's not a payment return; it's an information return. But Revenue uses it to cross-check your periodic VAT returns, and inconsistencies trigger queries. This guide explains what's required, how to complete it accurately, and the common mistakes to avoid.

What Is the VAT Return of Trading Details?

The VAT RTD is an annual statistical return that every VAT-registered business in Ireland must file. It summarises your total supplies (sales) and purchases for the year, broken down by VAT rate category.

Think of it as Revenue's way of reconciling what you've reported across your individual VAT returns throughout the year. Your bi-monthly or quarterly VAT3 returns report the total VAT due and reclaimable for each period. The RTD zooms in on the underlying trading details: how much you sold at each rate, how much you purchased at each rate, and how those figures relate to your accounts.

It's filed through ROS (the Revenue Online Service) and is separate from your periodic VAT3 filing. The RTD doesn't generate a tax liability on its own, but the figures must align with what you've already reported. When they don't, Revenue notices.

Why Does the RTD Matter?

Revenue introduced the RTD to improve visibility into trading patterns across the economy and to identify VAT compliance risks more effectively. From a business perspective, it matters for three reasons:

• Cross-referencing: Revenue compares your RTD figures to the totals from your periodic VAT returns. If there's a mismatch, you'll receive a query. Explaining discrepancies after the fact is time-consuming and stressful.
• Audit readiness: A clean RTD that ties back to your accounts demonstrates good bookkeeping discipline. If Revenue selects you for a VAT audit, the RTD is one of the first things they'll look at.
• Coding accuracy: Completing the RTD forces you (or your accountant) to check that every transaction in your accounting software is coded to the correct VAT rate. Errors in rate classification that went unnoticed during the year surface here.

The broader trend is toward more structured digital reporting. Revenue expects your accounts, your VAT returns, and your RTD to tell the same story. The businesses that maintain this consistency throughout the year have nothing to worry about at RTD time.

Who Must File an RTD and When Is It Due?

Every "accountable person" registered for Irish VAT must file an RTD. In practical terms, that's every business with a VAT registration, whether you're a limited company, sole trader, partnership, or other entity.

The RTD is an annual filing. The due date is typically communicated by Revenue through ROS or MyEnquiries notifications. It generally falls 23 days after the end of your annual VAT accounting period, but the exact date can vary. Check your ROS account for the specific deadline applicable to your business.

Common questions about who files:

• Newly registered businesses: You'll file an RTD for the period from your registration date to your year-end, even if it's less than 12 months.
• Businesses that ceased trading: A final RTD covering the period up to the date of deregistration is required.
• Nil or low activity periods: You still need to file, even if the figures are zero or minimal.

Missing the deadline can result in compliance follow-ups from Revenue, potential penalties, and increased audit risk. It's one of those filings that's relatively straightforward if your books are in order, but problematic if you leave it to the last minute with messy records.

What Information Does the RTD Require?

The RTD breaks your annual trading activity into several categories. The exact fields can evolve as Revenue updates the form, but the core information requested includes:

Sales / Outputs

• Total supplies at the standard rate (currently 23%).
• Total supplies at the reduced rate (currently 13.5%).
• Total supplies at the second reduced rate (currently 9%).
• Total supplies at the zero rate.
• Exempt supplies (where applicable).
• Intra-EU supplies of goods and services.
• Exports outside the EU.

Purchases / Inputs

• Total purchases at each VAT rate.
• VAT on purchases that is deductible (reclaimable).
• VAT on purchases that is non-deductible (not reclaimable, e.g., entertainment, non-business use).
• Intra-EU acquisitions.
• Imports from outside the EU.

How Is the RTD Different from the VAT3?

	VAT3 Return	RTD
Frequency	Bi-monthly or quarterly	Annual
Purpose	Calculate VAT liability/refund for the period	Summarise trading details by VAT rate for the year
Payment	Yes, VAT due is paid with the return	No payment; information only
Detail level	Aggregate totals (T1, T2, T3, T4)	Broken down by individual VAT rate and transaction type

The RTD should reconcile to the sum of your VAT3 returns for the same period. If you add up all your T1 (VAT on sales) figures from your bi-monthly returns, they should match the total output VAT implied by your RTD sales figures. The same applies to T2 (VAT on purchases). When these don't match, Revenue asks why.

How Do You Complete the RTD Accurately?

The process is straightforward if your accounting records are clean. Here's the practical approach:

1. Run your VAT summary report from your accounting software. Xero, Sage, and QuickBooks all produce reports that show sales and purchases broken down by VAT rate for a given period. Set the date range to match your RTD period.
2. Reconcile to your filed VAT returns. Add up the figures from all your VAT3 returns for the year. Do the totals match your annual software report? If not, find the discrepancy before you file the RTD. Common causes: corrections posted after a VAT return was filed, credit notes, or misallocated transactions.
3. Check rate classification. Review your transactions for any items coded to the wrong VAT rate. A purchase at 23% coded as 13.5% will throw off both the RTD and your actual VAT position. Run a VAT exception or anomaly report if your software supports it.
4. Account for cross-border activity. Intra-EU supplies, intra-EU acquisitions, and imports need to be reported separately. Make sure these are correctly classified in your accounting software, not lumped in with domestic transactions.
5. Complete the RTD on ROS. Enter the figures in the relevant fields. Review before submitting. Once filed, you can't easily amend it.

What Are the Most Common RTD Mistakes?

1. Figures don't reconcile to VAT returns: The most common issue. Usually caused by journal entries, corrections, or credit notes posted after the relevant VAT3 was filed.
2. Wrong VAT rate classification: A transaction at 13.5% coded as 23%, or exempt supplies mixed in with zero-rated. This distorts the RTD and may indicate errors in your VAT returns too.
3. Omitting intra-EU or import data: Cross-border transactions must be reported separately. Leaving them out, or including them in the domestic figures, creates inconsistencies.
4. Using round numbers or estimates: The RTD should come from your accounts, not approximations. Revenue's systems are designed to spot round-number entries that don't match detailed transaction data.
5. Filing late: A late RTD draws attention. Revenue may issue compliance notifications, and it increases the likelihood of being selected for a VAT review or audit.
6. Not filing at all: Some businesses don't realise the RTD is a separate obligation from the VAT3. It is. Ignoring it doesn't make it go away.

How Do You Prepare for the RTD Throughout the Year?

The businesses that find the RTD easy are the ones that maintain clean VAT coding all year. You don't need to do extra work at RTD time if the following is in place:

1. Correct VAT codes on every transaction: When entering sales and purchases, apply the right VAT rate from the start. Don't default everything to standard rate and "fix it later."
2. Monthly VAT reconciliation: At each VAT return period, reconcile your software's VAT report to the figures you're filing. Catch discrepancies in real time, not at year-end.
3. Separate coding for cross-border transactions: Set up your chart of accounts or VAT codes to distinguish domestic, intra-EU, and non-EU transactions clearly.
4. Review after each VAT3 filing: After you file a VAT3, check for any adjustments or corrections that need to be posted. Record them immediately so they're captured in the next return.

Frequently Asked Questions About the VAT RTD

Is the RTD the same as the annual VAT return?

No. The RTD is a separate information return. Your periodic VAT3 returns are your liability returns (where you pay or reclaim VAT). The RTD is a supplementary annual filing that breaks down your trading activity by VAT rate for cross-referencing purposes.

What happens if my RTD figures don't match my VAT returns?

Revenue's systems flag discrepancies automatically. You may receive a query letter or a compliance notification asking you to explain the difference. In some cases, it can trigger a more detailed VAT review or audit. It's far better to reconcile and resolve any differences before filing the RTD than to explain them afterwards.

Can I amend an RTD after filing?

In some cases, you can submit an amended RTD through ROS. However, it's better to get it right the first time. If you discover an error after filing, contact Revenue to discuss the correct procedure for your situation.

Do I need to file an RTD if I had no trading activity?

Yes. If you're VAT-registered, you must file the RTD even if your figures are nil. A nil return is quick to complete but still required.

Need Help Getting Your RTD Right?

If your VAT coding has been inconsistent during the year, or you're not sure how to reconcile your RTD to your VAT3 returns, we can help. We review your VAT records, identify and fix coding errors, reconcile the figures, and file the RTD accurately on your behalf.

Get in touch today before your RTD deadline. Clean books make for a clean return, and we'll make sure both are in order.

Contact First Accounts

Disclaimer: This guide is for general information purposes only and does not constitute tax advice. Tax rules and thresholds can change. Always consult a qualified accountant or tax adviser for advice specific to your circumstances.