What are the ways of accounting for VAT in Ireland?

Ireland is one of the most attractive countries in Europe. It offers favourable conditions for entrepreneurs, as well as easy access to UK and EU markets. The country offers a developed infrastructure, a highly skilled workforce and a stable economic environment conducive to investment. Those interested in starting a business in the country or expanding their current operations should familiarize themselves with Irelands tax rules, including VAT rates. Here is a brief guide on the subject.

Applicable VAT number format in Ireland

VAT numbers issued in Ireland can be easily recognized because of their specific format. It consists of the IE country code and 8 or 9 characters – a number and two letters. Examples of VAT numbers in Ireland can therefore look like this: IE1X3456X, IE1234567X or IE1234567XX. It is also worth noting that the validity of a VAT number can be checked using the VIES service, the European Unions VAT information exchange system.

Tax thresholds and register for VAT

Businesses and individuals must register for VAT in Ireland if their annual turnover in a calendar year exceeds EUR 37,500 when providing services or EUR 75,000 when selling goods. If a business sells goods and services remotely, it should register for VAT once the tax threshold of EUR 35,000 is exceeded. If, on the other hand, both services and goods are sold, but the latter account for more than 90 per cent of turnover, then the tax threshold is EUR 75,000.

Specific activities requiring registration

Registration for VAT in Ireland is also required if a company is engaged in specific activities highlighted by the Irish tax authorities. These include distance selling from Ireland, transport of goods from Ireland, provision of IT services from Ireland, transactions involving property lying in Ireland, import of goods into Ireland and provision of services within Ireland.

Ways to register a company for VAT in Ireland

To register your business for VAT in Ireland, you will need to complete a form with the symbol TR1 or TR2. This can be done via the Revenues Online Services website. Overseas companies can use the appropriate form variants – TR1 (FT) and TR2 (FT), but these applications should be submitted on paper unless there are exceptional circumstances. In Ireland, the appointment of a fiscal representative is not required but can simplify many of the companys tax processing procedures.

Several types of VAT rates

Ireland has a standard VAT rate of 23%. In addition, reduced rates of 13.5% and 9% are applied. The former is used for coal, oil, real estate and car leasing transactions, among others. The 9% rate, on the other hand, is used for printed material as well as entertainment services, including cinemas and museums. A separate VAT rate of 4.8% applies to livestock and other agricultural matters.

In addition, there is also a 0% rate in Ireland, which applies to transactions relating to the export of goods, orally administered medicines, and assistance to disabled persons. On the other hand, educational services, financial services, medical services, as well as live musical and theatrical performances are exempt from VAT, provided that no meals are served during the performance.

Support from a professional tax office

The tax system in Ireland can seem complicated, which is why many companies choose to use the support of a specialized tax office such as INTERTAX. For more detailed information, please visit the website at: https://polishtax.com/vat-in-ireland/. In this way, companies can focus on product and service development without incurring additional costs from the Irish tax authorities.