Registering when acquiring goods or services from abroad
Generally, the following exempt and non-taxable persons do not need to register for Value-Added Tax (VAT) in the State:
- Non-VAT registered businesses.
- Exempt businesses such as banks.
- Public bodies such as local authorities, State agencies and semi-State bodies.
- Farmers, fishers or race horse trainers.
However, they may have to register and account for VAT if they
Receiving taxable services from abroad (EU and non-EU)
You must register and account for VAT if you receive taxable services from abroad. This obligation arises irrespective of the value of those services and applies even if you are solely engaged in exempt, or non-taxable, activities. Once you are VAT registered, you must fulfil all the obligations of an accountable person. This includes filing VAT returns and paying any VAT due on taxable supplies.
Flat-rate farmers, fishers and race-horse trainers need to register if they receive such services. They can retain their unregistered status in respect of their farming or fishing activities.
Persons other than farmers, fishers and race-horse trainers who are registered for VAT must fulfil all the obligations of accountable persons.
You may not reclaim VAT if you are engaged solely in exempt, or non-taxable, activities.
Acquiring goods from other EU Member States
You are obliged to register and account for VAT if you acquire, or are likely to acquire, more than €41,000 worth of goods from other European Union (EU) Member States in any 12 month period. Once you are VAT registered, you must fulfil all the obligations of an accountable person. This includes filing VAT returns and paying any VAT due on taxable supplies.
Flat-rate farmers, fishers and race-horse trainers may be required to register in respect of receiving such goods. They can retain their unregistered status in respect of their farming or fishing activities.
How to calculate the VAT on goods or services from abroad
You must calculate, and pay, VAT on the invoiced amounts at the appropriate Irish VAT rate to Revenue in your periodic VAT Return.
By passing your VAT number to the supplier, you will not have to pay VAT in the other Member State.