What Is VAT?
Value-Added Tax (VAT) is a tax levied on sales of goods or services within the EU Member States. It is the final consumer of the goods or services who ultimately pays the VAT. Along the supply chain, each party (manufacturer, wholesaler, and retailer) functions as a VAT collector.
These parties collect VAT from their customers and subsequently include the VAT amount in their VAT returns to Revenue. Upon returning the collected VAT, they have the option to reclaim any VAT that has been charged to them by their suppliers, ensuring a fair and balanced VAT system.
This guide provides valuable insights into the VAT application process and obtaining a VAT number in Ireland. We highly recommend consulting with an expert for any VAT registration inquiries in Ireland. Our team here at Irish Formations is always available to provide expert support and guidance for your new business. We Include VAT registration in any of our premium company formation packages. Anything further than registration such as tax advice, we can offer you a free referral to an accountant.
Get Started
Our client services team are always happy to talk to you about what’s best for your needs!
Our clients couldn’t be happier
Hear from our satisfied customers
Who Should Register For VAT
In most cases, you are required to register for VAT if you are considered an accountable person.
Who Is Considered An Accountable Person
An accountable person is essentially a taxable entity, such as an individual, partnership, or company, meeting the following criteria:
- Engages in supplying taxable goods or services within the State.
- Is either registered for VAT or obligated to register for VAT.
As a result, they are mandated to apply VAT charges on their transactions within the State.
However, individuals engaged solely in exempt activities or non-taxable activities might not be obligated to register for VAT. Nevertheless, there are specific situations where such individuals may need to register for VAT. These situations include:
- Acquiring goods from other Member States
- Receiving services from abroad.
Registering my company for VAT
In the event that you have established a business but have not yet supplied taxable goods or services, you have the option to reclaim VAT on your start-up expenses. However, to avail of this opportunity, you must register for VAT.
This registration allows you to receive credit for VAT on purchases made before commencing your trading activities.
Typically, traders whose turnover falls below the VAT thresholds, along with farmers and sea fishers, are not obligated to register for VAT. Nonetheless, they do have the choice to elect for VAT registration if they wish to do so.
Of course before registering a company for VAT you will firstly need to register a company, read more about how to register a company here.
Registering An Irish Company
- Have A Director
- Have A Company Secretary
- Have A business address and registered address
- Decide on your Shareholders
- Decide on how many shares you want to release
- Decide on a company name
- Prepare and sign your incorporation documents
Once you provide us with the information and the signatures, we handle the rest! Get in touch today for company set up.
What Our Customers Are Saying
“I hate paperwork and for that reason, the company formation process gives me the heebie jeebies! Irish Formations were incredibly patient and helpful in breaking down the work flow needed to get the job done. With good humour and grace they hunted me down for the inputs I needed to make, and then seamlessly delivered on the project. I can’t imagine ever setting up a company with anyone else – there can be no better testament to their approach.”
Frank Hannigan
8697 registered users trust our process since 2009
Don’t hesitate to register a company today! We are happy to help you any step of the way.
Is Registering for VAT Compulsory?
Value-Added Tax (VAT) registration becomes mandatory when your turnover surpasses or is projected to exceed the specific VAT thresholds, which are based on your turnover within a continuous 12-month period. For intra-Community distance sales of goods and cross-border telecommunications, broadcasting, and electronic (TBE) services, the threshold is determined by your turnover in a calendar year.
If your turnover falls below a threshold limit, you have the option to choose to register for VAT voluntarily.
The key thresholds are as follows:
- €37,500 for entities exclusively supplying services.
- €10,000 for taxable persons engaged in mail-order or intra-Community distance sales of goods and cross-border TBE services into the State.
- €41,000 for individuals making acquisitions from other EU Member States.
- €75,000 for entities supplying goods.
- €75,000 for entities supplying both goods and services, where 90% or more of the turnover comes from goods supplies. However, this 90% figure does not necessarily include all goods sold; it excludes goods sold at the standard or reduced rates and those manufactured or produced from zero-rated materials.
Furthermore, if a person, not established in the State, supplies taxable goods to ‘taxable customers’ in the State or provides services to ‘taxable customers’ in the State, they must register and account for VAT, regardless of the turnover level.
Benefits of Your Company Applying For VAT
An accountable person is essentially a taxable entity, such as an individual, partnership, or company, meeting the following criteria:
- VAT reclamation: If you are VAT registered and have business expenses, you have the privilege to claim back the VAT you’ve paid on your purchases.
- Pricing convenience: By registering for VAT, businesses can include VAT on their products or services right from the start, eliminating the need to adjust prices or add VAT at a later stage.
Thankfully here at Irish Formations we offer VAT registration as part of of our premium company formation package.
Our Company Formations Packages
Irish Resident Director Package
Choose from our packages for Irish Resident Directors, offering tailored options to meet your specific needs.
Starting from
€219(+VAT)
Accountant/Legal
Package
Register a company for your client if you’re an accounting or legal practice in Ireland, ensuring compliance and efficiency.
Starting from
€199(+VAT)
Non-Resident Director Package
Special package for directors abroad to register a company in Ireland, ensuring compliance and ease of setup.
Starting from
€445(+VAT)
Not sure what you need?
Let our experts tailor your services. Call us and speak to an advisor today!
What Are The VAT Rates in Ireland?
VAT is a tax imposed on consumer spending, meaning that anyone who purchases goods and services pays VAT. It is typically incorporated into the cost of frequently consumed items like clothing and petrol, making it less visible to consumers. However, for certain items or services such as electricity and professional services, the VAT amount and rate may be explicitly displayed on your bill.
VAT is applied at each stage of the sales process, leading to a cumulative increase in the item’s cost.
At present, the standard rate of VAT stands at 23%.
Get Started
Our client services team are always happy to talk to you about what’s best for your needs!
How Do I Register For VAT in Ireland?
- Getting Started
In order to obtain a VAT number in Ireland, you must complete a tax registration form and submit it to Revenue. During the VAT registration process, Revenue will require proof of your trade activities with Ireland.
With the purchase of our VAT registration service we handle all paperwork and submissions, all we require is for you to fill it in and sign. All handlings and communications with the revenue will be done through us acting as your third party. If any problems such as rejection occur we will let you know and talk you through the resubmission. To avail of this service please see here. - Required proof before registration
● The business must engage in trading activity within Ireland.
● Invoices from both Irish suppliers and customers must be present.
● The business owner/Director must reside in Ireland.
● A physical office in Ireland is required; a Virtual Office will not be accepted for VAT registration.
Failure to meet these requirements may result in the rejection of your VAT registration. It is always a good idea to use an experts guidance before submitting to avoid this. Our team here at Irish Formations can ensure everything is done accurately.. - How Long Does The Process Take?
Upon receipt of your VAT application, Revenue typically takes 28 working days to process and issue your VAT number, assuming there are no additional inquiries from Revenue.
However, there might be instances where Revenue requires further information regarding your trade or additional evidence before finalizing the process. In such cases, they generally grant you 30 days to respond to their inquiry. It is crucial to reply to them as promptly as possible to ensure a smooth and timely completion of the VAT registration process. - VAT Returns
The deadline for filing and paying your Value-Added Tax (VAT) is the 19th day of the month following the end of each taxable period. It is crucial to ensure that you submit an accurate and complete return to the Collector-General through Revenue Online Service (ROS).
For those using ROS, the time limit for VAT return filing is extended to the 23rd day of the month.
Failure to meet the deadline or non-compliance with filing and payment may result in interest and penalties being imposed on your VAT account. Hence, it’s important to adhere to the specified dates to avoid any potential issues.
Ready To Register?
If you have read and now fully understand your VAT obligations and need or want to register please contact us today so we can handle this for you. If you are looking to incorporate, remember that this service will be included in the purchase of any premium package.
We would always strongly advise seeking the right advice on whether or not you need to register for VAT so that you remain compliant. It is of course always easier to register from the beginning and incorporate it into the registering of your company. If you have queries or questions on any of the above please do not hesitate to contact us. Get in touch today to register your company for VAT!
Still Not Confident
We have over 20 years experience in Company Formations, Business Name Registration, & Company Secretarial. Call us and speak personally with our Managing Director Mark Hegarty.
