Do you actually have to register?
Registration becomes mandatory when your annual turnover (excluding VAT) passes the Revenue thresholds:
| What you sell | Threshold |
|---|---|
| Services only | €42,500 |
| Goods | €85,000 |
| Goods and services mixed | €85,000 if 90% or more of turnover is from goods, otherwise €42,500 |
| Goods you made from zero-rated materials, sold at 13.5% or 23% | €42,500 |
| Distance sales and digital services into Ireland from other EU states | €10,000 (EU-wide total) |
| Acquiring goods from other EU member states | €41,000 |
Revenue measures turnover over a calendar year, and it counts taxable goods and services, immovable goods, certain financial transactions and insurance services. Occasional disposals of business assets are left out: Revenue’s own example is a trader with €70,000 of sales who sells a delivery van for €20,000 and still counts as €70,000. If you are near the line, use the VAT calculator to strip VAT out of any gross figures first, because the thresholds are VAT-exclusive. Every threshold row, including the €10,000 and €41,000 EU limits and the SME scheme, is on the VAT threshold page.
Domestic-only or intra-EU?
Since June 2019 Ireland runs two-tier registration. Domestic-only is for businesses trading within Ireland and with non-EU countries; Revenue says it gets a speedier process. Intra-EU registration is for anyone buying from or selling to businesses in other EU countries and asks for more: customer type, due diligence on EU suppliers, turnover for last year and this year to date, and evidence of trade such as invoices, contracts or a detailed business plan. Approved intra-EU registrations are added to VIES automatically. Pick honestly. A domestic-only registration can be upgraded to intra-EU whenever you need it.
The application itself
- Through ROS. Businesses established in Ireland register online through Revenue Online Service, either directly or through a tax agent. Sole traders, individuals, partnerships and trusts complete form TR1; limited companies complete form TR2.
- Paper forms are the exception. Revenue returns paper applications that could have been done online. Paper is for exceptional cases where ROS cannot be used, and for businesses not established in Ireland, which use TR1(FT) or TR2(FT) and post them to the Business Taxes Registrations office in Wexford.
- What Revenue asks for. A description of your activity, expected turnover, bank details and, for intra-EU registrations, the evidence of trade listed above. Thin “I might trade someday” applications are the main reason for refusals.
How you get your VAT number
There is no separate application for a VAT number. When Revenue approves the registration, the number is issued and appears in your ROS account. An Irish VAT number is seven digits followed by one or two letters (for example 1234567FA), and the last letter is a check letter calculated from the digits. Once you have it, it goes on every invoice. Our VAT number check tests the format and check letter of any Irish number instantly, and explains why a domestic-only number will not show up on VIES.
When does registration take effect?
Generally from the date stated on your form. Revenue can agree to backdate registration in certain circumstances, but if you elect to register below the threshold the effective date cannot be earlier than the start of the taxable period in which you apply. If any of the details you supplied change later, you must tell your Revenue office within 30 days.
What changes once you are registered
- Your prices carry VAT. Everything you sell now has VAT added at the right rate: 23%, 13.5%, 9%, 4.8% or 0%. Our VAT calculator gives you the net, VAT and gross split for any price instantly.
- You reclaim VAT on costs. VAT paid on business purchases comes back through your returns, often the reason small B2B businesses register voluntarily. Start-up costs incurred before your first sale can be reclaimed too, but only if you register.
- You file VAT3 returns electronically. Once registered, returns and payments must go through ROS. The default is every two months. See our VAT3 guide for the mechanics and deadlines.
- Your invoices change. They must show your VAT number, the rate applied, and the VAT amount separately.
Frequently asked questions
What is the VAT registration threshold in Ireland?
You must register once your annual turnover exceeds €42,500 for services or €85,000 for goods. Revenue measures turnover excluding VAT over a calendar year. Two smaller thresholds also exist: €10,000 for distance sales and digital services sold into Ireland from other EU countries, and €41,000 for acquisitions of goods from other EU states.
How do I get a VAT number in Ireland?
You do not apply for a VAT number separately. Register for VAT through ROS using form TR1 (sole traders, individuals, partnerships, trusts) or TR2 (limited companies), and Revenue issues the VAT number when the registration is approved. It has seven digits followed by one or two letters, and you can test any Irish number with our VAT number check.
Can I register for VAT voluntarily below the threshold?
Yes. Revenue calls this electing to register. It lets you reclaim VAT on business costs, including start-up costs before you make your first sale, which often makes sense if your customers are VAT-registered businesses. It rarely makes sense if you sell to the public, because charging VAT makes you 23% dearer overnight.
What is two-tier VAT registration?
Since June 2019 you must choose between a domestic-only registration (trading within Ireland and with non-EU countries) and an intra-EU registration (trading with businesses in other EU states). Intra-EU applications need extra evidence of trade and, once approved, are automatically listed on VIES. A domestic-only registration can be upgraded to intra-EU at any time.
Can a sole trader register for VAT in Ireland?
Yes. Sole traders use form TR1 through ROS, the same route as partnerships and trusts. Limited companies use TR2. The thresholds are the same whatever the business structure: €42,500 for services, €85,000 for goods.
From what date does VAT registration take effect?
Generally from the date you put on the registration form. Revenue can agree to backdate it in certain circumstances, but if you elect to register voluntarily the effective date cannot be earlier than the start of the taxable period in which you apply.