When to register for VAT?
VAT is short for Value Added Tax and it is a tax that is paid on most goods and services at every stage of production and distribution. As a business owner, you may need to register your business for VAT and charge VAT on your goods/services.
Online businesses also need to charge VAT and there may be different rules if you are dropshipping. If you need specific advice about VAT and your business, it wil lpay you to get advice on your specific situation by booking an appointment to talk to us.
There are many VAT rates so you should check the VAT rate for your business and activity on the Revenue website.
Please see out notes below on how and when to register for VAT. We go through everything you need to know about registering for VAT in Ireland.
VAT limits in Ireland
In general, businesses register for VAT when they meet a level of sales ( also known as a threshold ).
The important limits for VAT are €37,500 per year for the sale of services and €75,000 per year for the sale of goods. This means that if you sell this amount or higher, over the course of 12 months (not calendar year), your business has to register for VAT. Businesses register for VAT with the Irish Revenue Commissioners (“Revenue”).
Other instances where businesses register for VAT;
- Businesses buying goods from other EU Member States over the value of €41,000, also known as Intra Conmmuity Acquisitions ( or ICA )
- When a business purchases services from outside of Ireland, there is no threshold for VAT. If you purchase services from outside Ireland, and the place of supply of the service is Ireland, your business may need to register for VAT in order to account for VAT on that supply.
Some businesses may decide to register for VAT before they meet any of the above criteria, but you should speak to an accountant about your situation first. You can reach us at 01 283 4123 or email@example.com to receive a quotation for accounting and tax services.
How to charge VAT when selling goods from an Irish company / business
There are different VAT rules depending on what you are selling ( Goods or Services ) , who your customers are ( Business or Consumer ), and where ( Ireland, outisde if Ireland but in the EU, and Rest of the World ).
This means information may differ depending on your business. You should talk to an accountant about your specific situation about whether you should be VAT registered and whether you need to charge VAT.