Ireland VAT Guide

Requirement to Register for VAT

If the turnover of a business in a 12 month period exceeds the threshold, the VAT registration becomes obligatory. The threshold for intra-Community distance sales of goods and cross-border telecommunications, broadcasting and electronic (TBE) services is based on calendar year.

The thresholds in Ireland are the following:

• For supplying only services – €37,500.
• For mail-order or intra-Community distance sales of goods and cross-border TBE services into the State – €10,000.
• For intra-Community acquisitions – €41,000.
• For supplying only goods – €75,000.
• For supplying both goods and services where 90% or more of the turnover is from the supplies of goods – €75,000.

However, businesses that do not exceed the threshold can also register for VAT voluntarily.

Non-established businesses have to register for VAT in Ireland if they supply services or taxable goods to taxable customers in the country.

To submit a registration for VAT in Ireland, form TR1 (individuals, sole traders, trusts, partnerships) or TR2 (limited companies) should be filled, signed and sent to the Tax Authority online.

Invoicing Requirements for Ireland

The details on a VAT invoice are crucial for establishing VAT liability on the goods or services provided, and it also enables VAT registered customers to reclaim VAT charged. There are certain requirements regarding the content of an invoice, which includes:

• The date of issue, and the one on which the goods or services were supplied.
• A unique sequential number.
• The supplier’s full name, address and registration number.
• The customer’s full name and address.
• In case of a reverse charge transactions, the VAT ID of the customer, and a note indicating that reverse charge should be applied.
• For intra-Community supply of goods, the customer VAT ID and a note that the transaction is an ‘intra-Community supply of goods’.
• For triangulation, an explicit reference to EC triangulation simplification and an indication that the person in receipt of the goods is liable to account for the VAT due on the supply.
• Quantity and nature of the goods.
• Extent and nature of the services.
• Unit price, exclusive of VAT.
• The payment received net of VAT.
• Discounts or price reductions.
• Breakdown by the rate of VAT.
• Total VAT payable.
• In case an early payment is made prior to the completion of the supply, the date on which the payment on account was made (only if that date differs from the date the invoice was issued).
• The full name and address and the Member State’s VAT number of the tax representative (if a tax representative is liable to pay the VAT in another Member State).
• If the invoice is issued in a foreign currency, the EUR amount should also be indicated.