Who should register for VAT?

  1. Overview
  2. What are the VAT thresholds?
  3. Persons required to register solely because of goods or services acquired from abroad
  4. Who may elect to register for VAT?
  5. Option to tax lettings

Persons required to register solely because of goods or services acquired from abroad

The following persons would not otherwise be required to register for Value-Added Tax (VAT) in the state. They may, however, be required to register and account for VAT on Intra-Community Acquisitions, or if in receipt of taxable services from outside 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.

Exempt persons and certain non-taxable entities acquiring goods within the EU

Exempt persons and certain non-taxable entities are obliged to register and account for VAT in certain situations. Such situations include where they acquire, or are likely to acquire, goods from other European Union Member States. However, the obligation only arises where the value of those goods exceeds, or is likely to exceed €41,000 in any 12 month period.

Flat rate farmers, fishers and race-horse trainers may be required to register in respect of receiving such goods, subject to the relevant threshold. They are however entitled to retain their unregistered status in respect of their farming or fishing activities.

You may not reclaim VAT if you are an exempt or non-taxable person.

Exempt persons and certain non-taxable entities receiving taxable services from abroad

Exempt persons and certain non-taxable entities must register and account for VAT if they are in receipt of taxable services from abroad. This obligation arises irrespective of the value of those services.

Flat rate farmers, fishers and race-horse trainers are required to register in respect of receiving such services. They are however entitled to retain their unregistered status in respect of their farming or fishing activities.

You may not reclaim VAT if you are an exempt or non-taxable person.

Paying VAT on services from abroad

You must pay VAT on the invoiced amounts at the appropriate Irish VAT rate to Revenue in your periodic VAT return. You may be entitled to reclaim the VAT at the same time.

You must provide your VAT number to the supplier in order to avoid paying VAT in the other Member State.

Next: Who may elect to register for VAT?