When you’re setting up a company in Ireland, you may be wondering about Irish VAT compliance. Should you register for VAT and what are the rules?

Our VAT service includes registering your business for VAT, prepare]ation and filing of your VAT returns.

VAT Registration Ireland

What Is VAT?

VAT stands for Value Added Tax. It is a tax that is added on to the value of goods or services at every stage of production or distribution. As a consumer most of the goods or services that we purchase have VAT included in the price. VAT is collected by Revenue via businesses that have registered for VAT. You can register for VAT if your business reaches the VAT threshold or voluntarily register. These businesses charge VAT on the services or goods they are selling, and that VAT is then paid to Revenue. A VAT registered business can also claim back VAT on expenses.

Some business owners prefer to be registered for VAT. They might want to reclaim the VAT they pay out on goods or services they receive, or to be zero-rated in other EU countries.

Accountant Online will handle your VAT registration process for you and file your VAT returns: Once you are registered for VAT you are obliged to file VAT returns (usually bi-monthly or quarterly) to Revenue.

Do I Need To Register For VAT?

It is a legal requirement for your company or business to register for VAT if turnover is greater than €37,500 for supplying services, or over €75,000 for the supply of goods. This applies to a rolling 12 months, not annual, which means that if your business is likely to exceed these VAT thresholds at any time, you should register for VAT.

VAT applies to limited companies and sole traders who exceed or are likely to exceed the VAT threshold. If you’re unsure about whether your business should apply for a VAT number, speak to your accountant and they can advise you.

How To Register For VAT In Ireland?

Revenue may not agree to give you a VAT number unless they are satisfied that you have a ‘VAT-able’ activity in Ireland. Therefore, you need to demonstrate that your company is trading in Ireland. You can do this by, e.g. producing a sales contract with an Irish company, or invoices for sales to Irish customers. Confused about whether you will qualify for a VAT number in Ireland? Speak to your accountant and let them know your current situation.

If you are registered for VAT, you need to charge VAT on your goods or services. Depending on the threshold of each country you supply your goods or services to, you may need to register in more than one state.

VAT Fees

At Accountant Online, the fees for the filing of VAT returns are dependent on the number of transactions you have per return. The fees are charged monthly. We can also assist you in registering for VAT, there is a once-off charge of €145.00 plus VAT for VAT registration for Irish companies.

Monthly Fee and Number of transactions per VAT return

  • €37 plus VAT  for up to 10 transactions per bi-monthly VAT return
  • €50 plus VAT  for 11 to 30 transactions per bi-monthly VAT return
  • €75 plus VAT  for 31 to 50 transactions per bi-monthly VAT return
  • €100 plus VAT  for 51 to 75 transactions per bi-monthly VAT return
  • €129 plus VAT  for 76 to 100 transactions per bi-monthly VAT return

If you still having questions about VAT, check out our recent blog post about VAT Registration In Ireland.