A trader who makes taxable supplies of goods and services in Ireland can elect to register for Irish VAT, but VAT registration is compulsory if the value of a trader’s taxable supplies exceed the certain thresholds during a continuous 12 month period. The main thresholds include:
- €37,500 in the case of persons supplying services only.
- €35,000 for foreign traders making mail-order or distance sales to consumers into Ireland.
- €75,000 for persons supplying goods.
- €75,000 for persons supplying both goods and services where 90% or more of the turnover is from the supplies of goods, subject to certain exclusions.
- €41,000 for persons making acquisitions from other European Union Member States (excluding new-means of transport and excisable goods).
Irish traders in receipt of certain services from abroad are required to register for VAT regardless 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:
- taxable goods to ‘taxable customers’ in the State, or
- services to ‘taxable customers’ in the State.
The registration requirement for non-established traders applies regardless of the level of turnover.
There are other circumstances which give rise to an obligation to register for VAT, but they are beyond the scope of this overview.
VAT Registration Procedure
Businesses established in the Ireland can register for VAT through Revenue’s Online Services (ROS) and should complete either a Form TR1 (individuals, sole traders, partnerships) or a Form TR2 (companies), along with submitting certain supporting documentation. Paper applications for Irish businesses are only allowed in exceptional circumstances and where ROS is not available.
Applicants whose business is not established in the State should submit a paper version of the following forms:
- TR1(FT) registration form for individuals, sole traders, trusts and partnerships
- TR2(FT) registration form for companies.
During the registration process, it is vital that a company shows evidence of the intention to undertake vatable trading activities e.g. copies of invoices, contracts, agreements etc.
VAT registration is effective from a date agreed to by the local tax district after a completed application has been received by Revenue, and can be backdated where registration is not elective. If, however, a trader elects to register, the effective date will not be earlier than the beginning of the two-month taxable period during which the application was made.
Once registered, traders are required to file bi-monthly VAT returns and an annual return of trading details.
VIES returns must be filed by traders who supply goods and/or services to the EU. The VIES return must usually be filed on a quarterly basis, but 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.
A separate detailed INTRASTAT filing may be required on a monthly basis in respect of the movement of goods in to and out of the EU. In the case of goods dispatched from Ireland to other EU Member States, the annual threshold for detailed filing is €635,000. In the case 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, details of the goods entering and leaving Ireland can be included on the periodic VAT 3 returns filed by the VAT registered trader.
As your VAT agent, Pearse Trust/Corporate Secretaries can guide you through the VAT registration process and provide ongoing assistance with VAT compliance after registration.