In 1972, the Republic of Ireland implemented a tax on goods and services. The Irish VAT system aligns with the rest of Europe and is primarily governed by EU VAT directives. These directives oversee Irish VAT registrations, compliance, returns, Intrastat, EC sales declarations, and other related matters.

Any foreign company providing taxable services in Ireland may be subject to Irish VAT. This necessitates registering the foreign company to obtain a local VAT number, followed by registering and reporting any relevant transactions, which may include imports. The framework for Irish VAT is established in the Irish VAT Act of 1972, which has undergone numerous amendments.

The Revenue Commission, Ireland's tax authority, administers the VAT system, including daily updates on Irish VAT compliance policies. VAT is levied on the supply of most goods and services in Ireland. Although VAT registration might seem complicated, the process is straightforward if you are familiar with the requirements.

We will discuss the VAT registration form, the required documentation, timelines, and ongoing compliance obligations.

Generally, businesses are not required to register for VAT immediately upon registration, except under specific circumstances. As a new company, VAT registration is not necessary from the outset. Certain criteria must be met before you are obligated to charge VAT on your goods or services. Both sole proprietors and limited liability companies can register for VAT, and it is advisable to consult an expert on VAT registration beforehand.

VAT registration becomes mandatory if the business meets any of the following criteria:

Selling services that exceed €37,500 or goods that exceed €75,000 in a 12-month period (not a calendar year). Receiving goods from other EU Member States valued over €41,000, known as intra-community acquisitions (ICA). Receiving services from outside Ireland that are used within Ireland, which may necessitate VAT registration.

Businesses can also choose to register for VAT voluntarily, especially if they frequently engage with other VAT-registered companies. If you determine that VAT registration is required for your business in Ireland, do not hesitate to contact us for assistance.

Imported goods routed through Ireland to the European Union
Purchase and sale of products within Ireland
Warehousing of goods in Ireland
Sale of goods from Ireland to other EU countries
Transfer of goods between Ireland and other EU member states (intra-Community supplies)
Organization of live events, such as art or education conferences, in Ireland
Self-delivery of goods

ROS (Revenue Online Service) is Ireland's online platform for tax registration. It enables you to complete the entire VAT registration process online.

To register for VAT through ROS, follow these steps:

FILLING OUT A VAT REGISTRATION FORM

1. VAT registration must be completed through the Revenue Online Service (ROS). Sole traders registering for VAT must provide their PPS (Personal Public Service) number or IPN (Identified Person Number). Corporate bodies must submit their TRN (Tax Registration Number) instead. Note that VAT registration requires prior Corporation Tax registration, and the TRN is obtained as part of this process.

2. The online form requires comprehensive information about your business, including:
Business activities: A description of your company's operations and the products/services offered.
Irish business address: This must be a physical office address, not a virtual address.
Director’s information: Names, home addresses, and PPS (or IPN) numbers of directors.
Bank account details: Your Irish business bank account information.
VAT registration date: The intended date for VAT registration.

3. Ensure the form is filled out completely and accurately. Any mistakes could delay your application
Provide evidence of physical presence and trade
To qualify for VAT registration, you must demonstrate your business's physical presence and economic activity in Ireland. Acceptable evidence includes:

Warehouse or distribution center contracts
Office lease agreements
Employment of local staff
Invoices from Irish suppliers or customers
Contracts, transaction records, and documentation of assets or property owned
Any other pertinent records indicating a local establishment and active financial operations

Give some time for the Revenue for assessment
After submitting the registration form and required documents via ROS, it typically takes around 4-6 weeks for Revenue to evaluate your application. However, this timeframe can vary based on Revenue's workload and the specifics of your application. Providing comprehensive and relevant information can expedite the approval process.

Revenue will review your form and supporting documents to confirm your VAT eligibility. Be patient during this period and respond promptly if Revenue officers request additional information or clarification.

Has VAT Registration been Approved?
Take care of ongoing compliance

Once your VAT registration is successfully processed, you can expect to obtain a VAT identification number within 1-2 weeks. At this point, it becomes necessary to initiate VAT charges on sales and seek reimbursement for input VAT. Additionally, ongoing compliance responsibilities entail submitting periodic VAT returns to the Irish Revenue. These returns are due bi-monthly, meaning they must be filed every two months, with specific taxable periods outlined accordingly:

January-February;
March-April;
May-June;
July-August;
September-October;
November-December.

Ensure the upkeep of accurate tax records, including invoices, accounts, and related documentation, in accordance with regulations.
Verify the precision of VAT calculations to prevent potential penalties resulting from inaccuracies.
Explore the utilization of VAT accounting software to streamline the filing and reporting procedures.

What if revenue rejects your VAT application?
Regrettably, VAT application rejection is a frequent occurrence in Ireland, and the reasons for rejection may include:
Insufficient evidence demonstrating physical presence or economic activity within Ireland.
Absence of customers or suppliers within the country.
Directors located abroad.
Submission of incomplete or inaccurate information.
Failure to respond to additional inquiries from Revenue.

Should your application be declined or if you require assistance with VAT registration in Ireland, consider reaching out to LSC & Partners. Our team of experts can guide you through the process, from gathering required documentation to addressing any potential obstacles. With the right support, achieving VAT registration is feasible.

What documents do we need for VAT registration?
To enroll a foreign company for VAT in Ireland, it's essential to fill out the requisite VAT registration application form. If you require assistance with this process, feel free to reach out to us without hesitation.

Why should you choose us?
As a company boasting extensive experience spanning over a decade in the market, we prioritize individualized care for each client, ensuring dedicated support tailored to their specific needs.

What do we offer?
We provide various solutions concerning online sales, leveraging our acquired expertise and international sales endeavors to broaden the scope of services available to you.

Conclusion
Registering for VAT introduces additional responsibilities but proves advantageous for qualifying businesses. It's crucial to register punctually, meticulously adhere to the procedures, and maintain ongoing compliance. By adequately preparing and understanding the process, you can seamlessly register for VAT in Ireland and enjoy its advantages.