VAT3 Boxes Explained: T1, T2, T3, T4, E1, E2, ES1, ES2 and PA1
Staxo Team, 2026-09-16
The VAT3 has nine boxes. Four of them deal with VAT amounts, four record the value of your trade with other EU countries, and one records imports from outside the EU. Get the boxes right and the return almost fills itself. Get one wrong and you can overpay, underpay or trigger a Revenue query.
This guide explains every box using Revenue's own definitions, then walks through worked examples in euro.
The VAT boxes: T1 to T4
T1: VAT on sales
Revenue defines T1 as the total VAT due on your supplies of goods and services, on intra-Community acquisitions of goods, on imports of goods where you applied postponed accounting, and on received services, as appropriate.
That is broader than "VAT on my invoices". T1 includes:
- VAT you charged customers on Irish sales at 23%, 13.5%, 9% or 4.8%.
- VAT you must self account for on goods bought from VAT registered suppliers in other EU countries (intra-Community acquisitions).
- VAT you must self account for on services received from abroad under the reverse charge.
- Import VAT on goods brought in under postponed accounting.
Example. A consultancy invoices 30,000 euro net at 23% in the period, so 6,900 euro of sales VAT. It also pays 500 euro net to a US software company for a subscription. The reverse charge applies, so 115 euro (23% of 500) is added. T1 is 7,015 euro.
T2: VAT on purchases
Revenue defines T2 as the total VAT you are entitled to reclaim on goods and services, as far as they relate to your taxable supplies and qualifying activities.
Two conditions matter. The purchase must be for your taxable business, and the VAT must be deductible. VAT on most food, drink, accommodation, entertainment and passenger cars is not deductible even when the spend is for business. You also need a valid VAT invoice to support each claim.
T2 also includes the self accounted VAT from T1 where that VAT is deductible. The same 115 euro on the US subscription above goes into T2, cancelling out.
Example. The consultancy has Irish purchase invoices carrying 1,200 euro of VAT, of which 150 euro relates to client lunches and is not deductible. Deductible VAT is 1,050 euro. Add the 115 euro reverse charge. T2 is 1,165 euro.
T3: VAT payable
Where T1 is greater than T2, the difference is the amount you pay. In the example, T3 is 7,015 minus 1,165, which is 5,850 euro.
T4: VAT repayable
Where T2 is greater than T1, the difference is repayable to you. A business that exports most of its output at 0% often has a T4 figure every period, because it reclaims Irish VAT on costs but charges none on sales.
Example. A food producer sells 40,000 euro of zero rated bread and buys packaging and equipment carrying 2,300 euro of VAT. T1 is 0, T2 is 2,300, T4 is 2,300 euro.
The EU trade boxes: E1, E2, ES1, ES2
These four boxes record the value of goods and services, not the VAT. Revenue states that all VAT registered traders must complete them and that a zero must be entered where there is no intra-Community trade. They cannot be left blank.
E1: goods to other EU countries
Total value of goods sent to customers in other EU countries. These are typically zero rated intra-Community supplies to VAT registered business customers, where you quote the customer's VAT number on the invoice.
Example. An Irish wholesaler ships 12,000 euro of goods to a VAT registered retailer in France. E1 is 12,000. No VAT is charged, so nothing goes into T1 for that sale.
E2: goods from other EU countries
Total value of goods received from suppliers in other EU countries. You self account for VAT on these acquisitions at the Irish rate in T1 and, where deductible, reclaim it in T2.
Example. The wholesaler buys 8,000 euro of stock from a German supplier. E2 is 8,000. Add 1,840 euro (23%) to T1 and, as the stock is for resale, 1,840 euro to T2.
ES1: services to other EU countries
Total value of services supplied to customers in other EU countries. Most business to business services are taxed where the customer is, so you charge no Irish VAT and the customer self accounts.
Example. A web designer bills a Spanish company 4,500 euro. ES1 is 4,500. No Irish VAT is charged.
ES2: services from other EU countries
Total value of services received from suppliers in other EU countries. Self account in T1 and reclaim in T2 where deductible.
Example. The same designer pays 600 euro to a Dutch hosting provider. ES2 is 600. Add 138 euro to T1 and 138 euro to T2.
PA1: postponed accounting on imports
Postponed accounting lets a VAT registered business account for import VAT on the VAT3 instead of paying it at the port. Revenue's guidance says PA1 must be completed with the customs value of goods imported under postponed accounting, as per the customs declarations, plus customs duty. The VAT on that figure is then entered at T1 and, subject to the usual rules of deductibility, at T2.
PA1 includes goods at every VAT rate, including zero rated goods, as long as postponed accounting was applied on the customs declaration.
Example. A retailer imports goods from Great Britain with a customs value of 10,000 euro and pays 300 euro customs duty. PA1 is 10,300. Import VAT at 23% is 2,369 euro, which goes into T1 and, as the goods are for resale, into T2.
Putting it together: one full return
| Box | Entry | Amount (euro) |
|---|---|---|
| T1 | Sales VAT 6,900 + EU acquisition VAT 1,840 + reverse charge 138 + import VAT 2,369 | 11,247 |
| T2 | Irish purchase VAT 1,050 + 1,840 + 138 + 2,369 | 5,397 |
| T3 | T1 minus T2 | 5,850 |
| T4 | Not applicable | 0 |
| E1 | Goods to France | 12,000 |
| E2 | Goods from Germany | 8,000 |
| ES1 | Services to Spain | 4,500 |
| ES2 | Services from the Netherlands | 600 |
| PA1 | GB imports, customs value plus duty | 10,300 |
Quick checklist before you submit
- Every box has a number, even if it is 0. Never write "nil".
- Reverse charge and EU acquisition VAT appears in both T1 and T2, if deductible.
- Non deductible VAT (food, drink, entertainment, cars) is excluded from T2.
- E and ES boxes hold net values, not VAT.
- PA1 is customs value plus duty, not the VAT.
- T3 or T4 matches the VAT report from your bookkeeping.
Frequently asked questions
Do I put UK sales in E1?
Great Britain is outside the EU, so goods sold there are exports, not intra-Community supplies. They are zero rated but do not go in E1. Northern Ireland is treated as EU for goods, so goods sold to a VAT registered business there do go in E1.
Why does the reverse charge go in both T1 and T2?
You are standing in for the foreign supplier. You charge yourself the VAT (T1) and, because the cost is for your taxable business, you reclaim it (T2). The net is nil, but Revenue needs both entries.
What if I have no imports?
Enter 0 in PA1. The field is mandatory.
Are the E and ES boxes the same as the VIES return?
No. VIES is a separate return listing each EU customer by VAT number. The VAT3 boxes are totals only. The figures should agree with each other.
Sources
- Revenue: How do you complete a VAT3 return?
- Revenue: What information on your ICAs must you submit?
- Revenue: Tax and Duty Manual on Postponed Accounting (PDF)
Staxo tags each sale and purchase with the right VAT treatment, including reverse charge and EU trade, and rolls them up into the T1, T2, E and ES boxes for you. See how Staxo helps with your VAT3.