Registering for VAT in Ireland: What Start-Ups Need to Know

Are you a start-up unsure about VAT? Confused about how and when to register? Or perhaps your business deals with the UK market, and you’re wondering how Brexit will affect your VAT obligations?

This guide will walk you through the basics of VAT in Ireland, the requirements for registration, and what Brexit means for Irish businesses.

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What Is VAT (Value Added Tax)?

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VAT is a tax added to most goods and services in Ireland. Once a business registers for VAT, it must:

• Charge VAT on sales

• Submit VAT returns (usually every two months)

• Pay VAT liability to Revenue

But VAT isn’t one-size-fits-all - different rates apply to different sectors, and rules vary between Ireland, the EU, and Britain.

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Do You Need to Register for VAT?

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You don’t need to register right away after starting your business. Instead, there are specific criteria that determine when you must register.

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When VAT Registration Is Required

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1. Annual Sales Thresholds

   • €37,500 or more from services

   • €75,000 or more from products
     (Measured over any 12-month period - not the calendar year)

2. Intra-EU Goods

   • You receive goods worth over €41,000 from another EU member state

3. Non-Irish Services

   • You’re receiving services from outside Ireland for use in Ireland

If any of these apply, speak to an accountant for tailored advice.

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Can You Register Voluntarily?

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Yes, you can voluntarily register for VAT even if you don’t meet the thresholds. This is common for businesses that:

• Work with VAT-registered suppliers or clients

• Want to claim back VAT on expenses

However, once registered, you must submit bi-monthly VAT returns. We recommend consulting a start-up accountant to see if this is the right choice for you.

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VAT Rates in Ireland

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Here are the current VAT rates Irish businesses should be aware of:

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23% - Standard rate for most goods and services

13.5% - Tourism, building services, hairdressers, photographers

9% - Newspapers, e-books, sporting facilities

4.8% - Livestock (excluding chickens), greyhounds, horse hire

0% - Exports, basic food, books, children’s clothing, medicines

VAT-Exempt - Medical, educational, financial services

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VAT and Brexit: What’s Changed?

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Since Brexit, doing business with or in the UK comes with new VAT obligations:

• Irish businesses paying UK VAT must now submit claims under the 13th Directive

• Sales of goods to UK customers may no longer qualify under EU “Distance Sales” rules

• UK businesses selling in the EU must register in an EU member state under the Mini One Stop Shop (MOSS)scheme

• UK-based travel agents may need to register for VAT in each EU country they sell in

The VAT impact of Brexit is significant and touches nearly every industry in Ireland.

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Need Help with VAT?

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VAT is complex, but you don’t have to figure it out alone. Whether you're starting up, registering for the first time, or adjusting post-Brexit, Bond & Co accountants are here to help.