VAT/GST Registration in Ireland

VAT/GST Registration in Ireland

A swiftly growing economy, availability of young and academically qualified workforce and vast investment opportunities in a variety of fields are only a few of the reasons why Ireland happens to be the right location for setting up a business. The business environment consists of a versatile prospectus of companies working collectively with each other. These companies consist of manufacturers, consultants, distributors and outsourcing companies. The concept of competition is entirely subjective to variability as in most cases, these business entities in the Irish Market believe in collaboration rather than competition. Thus, this prime factor allows for reduced competitive stress and will enable businesses to operate comfortably allowing them to sustain for a more extended period of time.

Importance of VAT/GST

Before discussing the importance of Irish VAT/GST, it is essential to develop the context of the entire Irish taxation system. Similar to the policy formation tactics of many countries in the EU, the taxation is primarily based on the import and export of certain items specified in the Irish taxation threshold. The threshold also specifies that once a business earns a cumulative annual revenue through the sale of products above the prescribed limit of 75,000 Euros, then the business must register for VAT within a period of 30 days after achieving the threshold limit to continue its operations.

In case a business is in the incorporation phase such as company registration or pilot stage of operations, it can still register for VAT, but the business must provide assurance stating that it will earn at least 37,500 Euros in the time span of 12 months post registration. The VAT is a mandatory obligation for many businesses (with the exemption of agricultural and farming companies) as these taxes on items helps in the acquisition of imports coming into the Republic of Ireland from the European Union and other countries in the trade portfolio. Only a few activities such as farming and agriculture are non-taxable with items such as fertilizers, animal feeds and Veterinary medicines being exempted from any form of Value Added Taxes.

VAT Eligibility

The Following are not eligible

  • An agriculture based company
  • Farmers
  • A person or business whose supplies of taxable goods or services consist exclusively of supplies of unprocessed fish caught by him in a sea fishing business
  • A person or business whose supplies of machinery, plant or equipment has been utilized by him in the process of a sea fishing business
  • A person or business whose revenue from the supply of other goods and services has not exceeded and is not likely to exceed Euros 37,500 per annum
  • Entities whose receipts do not exceed Euros 75,000 per annum, provided that 90% of their total receipts arise from the supply of taxable goods
  • Persons whose receipts do not exceed Euros 37,500 per annum in the 12-month span post first registration and assurance

The Following are eligible

  • Individual or business earning revenue through the supply of taxable goods and have surpassed the Euros 75,000 limit. In this case, they must register for VAT within a span of 1 month to continue their business activities and to avoid illegal tax evasion.
  • Exempt entities such as Farmers, Flat rate fishers and State Agencies must register for VAT in rare cases where they are acquiring their resources from EU nations, and the transaction amount is exceeding 41,000 Euros. Such a massive amount of imports require compulsory VAT implications.
  • Exempt entities such as Farmers, Flat rate fishers and State Agencies must temporarily register for VAT in rare cases where they are acquiring their resources from abroad or foreign countries outside the EU. There is no specific monetary limit and post the transactions, the concerned individuals exempted shall retain their status of unregistered.

Irish VAT Implications

Businesses that are dealing in supply of taxable goods must ensure that they are maintaining proper records of all their transactions, hence, many companies hire employees solely for the purpose of documentation. The Irish legislation demands traders to maintain their documents of trade for a minimum duration of 6 weeks. Upon these implications, the registered entity (individual or business) must provide its customers with a VAT invoice within 30 days of goods supply consisting of the following details –

  • The Invoice number
  • Specific Date of supply
  • Date of invoice issue
  • The Description and the exact quantity of goods/services
  • The amount being charged in Euros
  • Rate of VAT applicable based on taxable items
  • The total amount being charged inclusive of taxes
  • Rate of discount, if offered
  • Mention of any schemes used
  • Supplier’s registered name, complete address and registration number. If the supply has been made to a customer in another EU member state, the registration number must be prefixed
  • Recipient’s full name, complete address and if the recipient is hailing from another EU member state, then the VAT invoice must show the recipient's VAT registration number in that member state

The above-mentioned VAT guidelines and regulations have been stated by the Office of Revenue Commissioners which is the Taxation authority under the Irish Government. In terms of these implications, they are applicable to the Republic of Ireland which constitutes ¾ of the entire Irish geographical bordering. The remaining ¼ is the region of Northern Ireland which comes under the jurisdiction of the United Kingdom.

Additional Guidelines for business with the EU Member States

  • Intrastat Returns must be completed on a monthly basis by any trader who imports more than Euros 191,000 worth items per annum from OR exports more than Euros 635,000 worth items per annum to the EU Member States
  • Upon issue of a request by an authorized officer from the Revenue Commissioners office, an accountable person of the business or trader must provide details to the office of any gifts or promotional items supplied which come under the criteria of taxable products and services

If you are a trader, an owner of a trading business or an aspiring entrepreneur that wants to embark on a journey to discover the glories of the Irish business community, then all you need to know about VAT/GST guidelines and procedures is available right here. Want to know more about how to set up your business in Ireland, Contact us and let us simplify your journey to become a dominant business entity in the Irish market.


How many types of forms are there online for VAT registration in Ireland?

TR1 registration form for individuals, sole traders, partnerships, and trusts.
TR2 registration form for limited companies.

In Ireland, do I need to register for VAT?

When your turnover exceeds or is anticipated to surpass the VAT criteria, you must register for value-added tax (VAT).

How does Ireland's VAT operate?

Every time the price of an item is raised throughout the sales process, VAT is applied. The usual VAT rate in effect right now is 23%.

Do I have to pay VAT in Ireland as a small business?

Farmers, marine fishermen, and business owners whose annual sales are below the VAT limits usually are exempt from the requirement to register for VAT.