What You Should Know About Vat Registration in Ireland

VAT or Value Added Tax in the EU is generally adopted consumption tax assessed on the added value of all goods and services. Once you register for VAT in Ireland, you are obliged to charge VAT on products and services you sell. VAT registration can be a tricky topic because it involves lots of different scenarios. Let’s clarify the key points about VAT registration in Ireland. 

Legal Requirements for VAT Registration in Ireland

Businesses registered in Ireland apply for VAT if their 12-month turnover (not the calendar year) approaches or exceeds a certain threshold. It is €37.000 in the case of persons supplying services only and €75.000 for persons supplying goods. In general, you must apply for VAT registration if you are an accountable (taxable person). 

Need to register for VAT in another EU country? Chern&Co can assist you with VAT registration in Germany!

Irish VAT registration is mandatory if you meet the additional criteria. Here they are:

• Inra-Community Acquisition (ICA). In simple words, in receipt of goods from other EU member states over the value of €41,000.
• In receipt of services from outside Ireland that are being used on the Irish territory.

In all other cases, businesses can choose to contribute VAT voluntarily. 

Benefits of Being Registered for Vat

There are three great benefits of being VAT registered that businesses can enjoy. 

Increased Credibility 

Displaying your VAT number on all official documentation, website, and stationery will give your business a more trustworthy image. Most people are aware of the VAT threshold so you give customers a more realistic image of what you are. 

You Can Claim VAT Refunds

Once registered, you can demand refunds for all goods and services your business acquires. This is how your selling price remains competitive and you are able to recover from VAT on your costs. 

You Can Reclaim VAT Refunds from the Past

You can reclaim VAT for certain items you purchased prior to registration. This requires a business to be operating for this length of time and keeping the VAT invoices and records for the period. 

VAT Tax Rate in Ireland

The current standard Vat rate in Ireland is 23%. The reduced rate of 13,5% is applied to certain fuels, short-term hire, hire of horses, etc. The second reduced rate of Value-Added Tax is 9% and applies only to certain goods and services, including certain eBooks, eNewspapers, ePeriodicals, books and periodicals, hairdressing services etc. The subjects of zero rate of VAT are certain oral medicine, certain animal feeding stuff, children’s clothing and footwear, etc.

Looking for VAT registration outside EU? Chern & Co can help you with VAT registration in Great Britain as well!

Irish VAT Registration Process

To receive a VAT number in Ireland, you need to submit an application to the Irish Revenue and show evidence that you trade in Ireland. Here is the basic package of proofs to gather.

• Business owners or directors live in Ireland;
• invoices from Irish suppliers and customers;
• you have a physical, not the virtual office in Ireland.

If the Revenue rejects your application, you can re-submit at a later stage when you gather all relevant documents. 

VAT Registration in Ireland with Chern & Co

At Chern&Co we believe that VAT registration does not need to be hard. At an affordable price, we take responsibility for VAT registration in Ireland for your business. We take care for all the legal processes required to have you registered for value added tax. Do not hesitate to contact our managers to get a private free consultation.

*Please, keep in mind that the cost of 350€ is only applicable to Irish residents and their companies. The cost of registration for non-Irish residents and their companies is 500€ (state fees included).