Registering for VAT in Ireland

Registering for VAT in Ireland

Registering for VAT in Ireland

Are you wondering about registering for VAT in Ireland? When you should register and what the thresholds are? In this blog, we’ll share what you need to know about registering for VAT in Ireland.

In Ireland, a trader who makes taxable supplies of goods and services can elect to register for Irish VAT. However, VAT registration is compulsory if the value of a trader’s taxable supplies exceed certain thresholds during a continuous 12 month period.

The main thresholds include:

  1. €37,500 in the event of persons supplying services only.
  2. Foreign traders making mail-order or distance sales to consumers in Ireland, it’s €35,000.
  3. €75,000 for those supplying goods.
  4. €75,000 for those supplying goods and services where 90% or more of the turnover is from the supplies of goods. (This is subject to certain exclusions).
  5. For those making acquisitions from other EU member states (excluding new means of transport and excisable goods), it’s €41,000.

Furthermore, any Irish traders in receipt of certain services from abroad are required to register for VAT irrespective of the value of the services received.

A trader who is not established in Ireland must register and account for VAT if that trader supplies;

  1. Services to ‘taxable customers’ in the State.
  2. Taxable goods to ‘taxable customers in the State.

This registration requirement applies regardless of the level of turnover for non-established traders. Other incidents give rise to an obligation to register for VAT that is beyond this overview. Should you wish to know more, please get in touch here.

Procedure for VAT Registration

Any business established in Ireland can register for VAT through ROS, Revenue’s Online Services portal. They should then complete a Form TR1 (sole traders, individuals, partnerships) or Form TR2 (companies). These forms should be submitted along with the supporting documentation. Paper or hard copy applications for Irish businesses are only allowed in exceptional circumstances and where ROS is not available.

Businesses not established in the State should submit a paper/hard copy version of the forms below:

  • TR1 (FT) registration form for individuals, sole traders, trusts and partnerships.
  • TR2 (FT) registration form for companies.

Throughout the registration process, it is important that a company shows evidence of the intention to undertake vatable trading activities such as copies of invoices, agreements, contracts etc.

VAT registration is effective from a date agreed to by the local tax district after a completed application has been received by Revenue. It can be backdated in the event registration is not elective. However, should a trader elect to register, the effective date will not be earlier than the beginning of the two-month taxable period during which the application was made.

VAT Compliance

Once traders are registered they are required to file bi-monthly VAT returns and an annual return of trading details. VIES returns must be filed by traders who supply the EU with goods and services. The VIES return must usually be filed on a quarterly basis. However, a return is required in respect of each calendar month if the value of supplies to the EU exceeds the quarterly threshold of €50,000 for goods.

There is also a separate detailed INTRASTAT filing which may be required on a monthly basis with regards to the movement of goods in to and out of the EU.

Should this be the case, for goods dispatched from Ireland to other EU member states, the annual threshold for detailed filing is €635,000. In respect of goods acquired in Ireland from other EU member states, the annual threshold for detailed filing is €500,000. Where those thresholds are not breached, the details of the goods entering and exiting Ireland can be included on the periodic VAT 3 returns filed by the VAT-registered trader.

Finally, City Trust and Corporate Services can help guide you through the entire VAT registration process and provide ongoing assistance and services with regard to VAT compliance after registration.