Who should register for VAT?

What are the VAT thresholds?

Value-Added Tax (VAT) registration is obligatory when your turnover exceeds, or is likely to exceed, the VAT thresholds. The thresholds depend on your turnover in any continuous 12-month period.

The threshold for intra-Community distance sales of goods and cross-border telecommunications, broadcasting and electronic (TBE) services relies on your turnover in a calendar year.

If the turnover is less than a threshold limit, you may elect to register for VAT.

The principal thresholds are as follows:

  • €40,000 in the case of persons supplying services only.
  • €40,000 for persons supplying goods liable at the reduced or standard rates which they have manufactured or produced from zero rated materials.
  • €80,000 for persons supplying both goods and services where 90% or more of the turnover is from the supplies of goods other than goods referred to above.
  • €80,000 for persons supplying goods.
  • €10,000 for taxable persons making mail-order or intra-Community distance sales of goods and cross-border TBE services  into the State. The threshold is calculated by taking account of the suppliers, or deemed suppliers, total value of intra-Community distance sales of goods and cross-border TBE services to customers in all European Union (EU) Member States. The threshold only applies where the supplier is established and has their permanent address, or usually resides, in only one Member State. Otherwise the supplier must register for Irish VAT in respect of such supplies. See the intra-Community distance sales of goods and the Electronically supplied services webpages for further information.
  • €41,000 for persons making acquisitions from other EU Member States.

A person, while not established in the State, needs to register and account for VAT if that person supplies:

  • taxable goods to ‘taxable customers’ in the State
  • or
  • services to ‘taxable customers’ in the State.

This applies irrespective of the level of turnover.

How is your turnover determined?

Your turnover figure may exceed the threshold limit. However, you may not be required to register for VAT.

For registration purposes, the turnover figure may be reduced by the amount of VAT paid on stock bought for re-sale. You should use this reduced turnover figure to see if you can register for VAT.

This adjusted turnover figure is used only for the purposes of determining your turnover for registration for VAT.

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