Two Tier VAT Registration Announced by Irish Revenue

Two Tier VAT Registration Announced by Irish Revenue

Two Tier VAT Registration

It has been announced that Irish Revenue is developing a two-tier VAT registration system for separate domestic and EU Vat registration. Under the new system, a company may apply for an ‘intra-EU’ or a ‘domestic-only’ registration. This change will apply to those who made their VAT application after the 17th of June 2019.

Under ‘Domestic Only’, this registration applies to goods and services that are both supplied and received in the state. Under an ‘Intra-EU’ registration, it will help intra-community acquisitions from all EU states including Ireland. This will also cover the reporting of intra-community supplies.

Domestic Only applicants will be able to avail of a more simplified registration process. These are businesses who are not undertaking any intra-EU trade. Should you initially register for domestic only and then wish to get in involved in intra-EU trade. Then you can apply for an intra-EU registration.

Revenue will be updating their internal systems to allow for the new registration process. From 15th June 2019, ROS (Revenue Online Service) will have an updated screen. Along with full functionality, it will include the faster response for domestic-only applications.

It’s also worth noting;

Any existing VAT registered customers are deemed to be Intra-EU VAT registered, will not have to contact Revenue concerning their registration

Also, if an application for intra-EU registration is approved by the Revenue. This will cover domestic activity also. With the case of an Intra-EU supplier, the taxpayer will see themselves registered automatically for VIES reporting obligations.

Finally, contact us today for more details on two-tier vat registration on or +353 1 6753140. Also, don’t forget to follow us on LinkedIn.