Banking & Finance
The Irish banking and financial system is very similar to that in the UK. The general approach and practices will seem very familiar to a UK business. The UK holding company may have a relationship with a UK bank which has a correspondent or even a subsidiary bank in the Republic of Ireland.
The opening of bank accounts is subject to the same money-laundering and identification requirements as apply in the UK, being based at present on the same common EU derived legislation on money-laundering terrorist financing and proceeds of crime requirements.
The same broad financing instruments available in the UK banking system are available in the Republic of Ireland. Accordingly, overdrafts, trade finance and other facilities for business are available on almost identical terms.
Banking practice is very similar. The Institute of Bankers the relevant professional body is organised on an all-Ireland basis reflecting the similarity of laws and practice.
Ireland and most EU states are part of the Eurozone. The Euro is the domestic currency. An Irish based subsidiary may invoice its EU customers in sterling. The option could be offered to customers in the EU to settle their invoices in sterling, if this was acceptable. Provision may be required for settlement on a particular date.
Irish VAT invoices may be expressed in sterling. However, the seller is also obliged to convert the amount to Euro for VAT accounting purposes. The VAT invoice must be retained to show the conversion rate, as the VAT accounting must be undertaken in Euro.
Revenue will accept the exchange rates which are published by the Irish Central Bank online on an ongoing basis. Revenue may agree to an alternative exchange rate to be applicable for a period such as a calendar month. If this is agreed it must be used for all currency transactions concerned during this period.