Updated 10 March 2012
Ireland follows the VAT rules on registrations and returns of the European Union, of which it is a member since the 1970's. The EU's VAT Directives contain most of the details of the requirements for Irish VAT Registrations and VAT Returns. The Irish VAT rate, currently 23%, is still set by the Irish government.
Click here if you would like free guidance on Irish VAT and compliance.
Ireland VAT Law
The Irish VAT law is contained within the Value Added Tax Act 1972, which has been amended many times, including the move to the European Union single market. It is administered by the Revenue Commissioners.
Irish VAT Registration
Foreign companies may register in Ireland for VAT without the need to form a local company – known as non-resident VAT trading. There is no VAT threshold in Ireland for the registration of non-resident traders – a VAT number must be in place before the commencement of taxable supplies.
There are strict rules on the situations where a registration is permitted. Common scenarios which require an Irish VAT registration include:
- Importing goods into Ireland;
- Buying and selling goods within Ireland;
- Organising live events, conferences etc in Ireland;
- Holding goods in a warehouse in Ireland as stock;
- Supply and install services;
- Selling goods from Ireland to other EU countries; and
- Distance selling to private individuals, e.g. internet retailing.
Registering for Irish VAT generally takes 3-4 weeks, although this can vary.
Irish VAT Compliance
There are detailed rules controlling the recording and processing of Irish transactions. These include guidelines on:
- Irish invoice requirements;
- Foreign currency reporting and translation; and
- Credit notes and corrections.
Irish VAT Rates
The standard VAT rate in Ireland is 23% since the start of 2012. Click here to read about a 2% VAT rate rise to 23% in 2012. It was 21.5% between October 08 and December 2009 and 21% from 2010 up until 31st December 2011. There is a reduced rate of 13.5% for hotel accommodation, newspapers, fuel for heating and others.
There are many variations to the rates above, including exempt and zero-rated taxable supplies. Please contact us to learn more:
Irish VAT Returns
Companies with an Irish VAT number must submit periodic returns detailing all taxable supplies (sales) and inputs (costs). Generally, returns are submitted every two months in Ireland. VAT returns in Ireland are due by the 19th of the month following the reporting period.
Irish Intrastat and EC Sales Lists
In addition to VAT returns in Ireland, companies may be required to submit additional statistical information. The Irish Intrastat system (or supplementary statistical declaration) requires a monthly return listing all movement of goods between Ireland and other EU-member states. The EC Sales List (VAT Information Exchange System or VIES) return contains information on the VAT numbers of customers and the values of sales in the period to them. There are annual thresholds for these filings.
Click here to read more about Intrastat and EC Sales Lists
Irish VAT Refunds
If a foreign company is selling goods in Ireland, but is not required to obtain an Irish VAT number, or simply incurring Irish VAT on local goods or services, then Irish VAT may be recovered through a VAT reclaim.
For more details, click here to read about our VAT Recovery service
To talk about our Irish VAT services, enquiries should contact TMF’s UK office, which co-ordinates TMF's European VAT services. TMF has offices in Dublin.
+44 (0)870 067 8881