Everything You Need to Know About VAT and Registering for VAT in Ireland
VAT is the tax added to the value of goods and services at each stage of production, distribution, and sale to the end consumer. Once a business owner has completed VAT registration, they are obliged to charge VAT on the products and services they sell.
When to Register for VAT in Ireland
As a new business you generally do not need to register for VAT straight after incorporation. Your business must meet a specific criterion before you start charging VAT on goods and services. Sole traders and limited companies are both eligible to register for VAT, so it is important to consult with an accountant from the beginning.
You Must Register for VAT if Your Business Falls Under The following
Your turnover exceeds or is likely to exceed the VAT threshold, in any continuous 12-month period. The VAT threshold includes the following:
- €37,500 in the case of persons supplying services only.
- €35,000 for taxable persons making mail-order or distance sales into the state.
- €41,000 for persons making acquisitions from other EU member states.
- €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. However, while all goods and services are part of the turnover, the 90% does not necessarily include all goods sold.
What are the VAT Rates in Ireland?
VAT rates refer to the percentage of VAT charged on your product or service. The standard rate of VAT in Ireland from March 1st, 2021 is 23%. However, there are other rates that you should be aware of. Please visit revenue.ie for a full list of VAT rates.
How to Register for VAT
You must fill in a tax registration form and submit it to revenue, to receive a VAT number in Ireland. Revenue will seek evidence that you have trade with Ireland during this registration process. Revenue will decide to accept or reject your application based on this evidence. This process usually takes at least 28 days before you receive your VAT number. However, it may take longer if you need to submit additional evidence.
New Companies Looking to Register for VAT
If you are a new company looking for assistance registering for VAT, please feel free to contact Gallagher Keane. Our team provide support to many new businesses and start-up companies; thus, we have an abundance of experience. VAT can be a complicated process for many business owners, therefore working with a professional team of tax experts can ensure this is a smooth process and all the correct evidence is submitted.