How to register for Two-Tier VAT

An overview of Two-Tier VAT

From 15 June 2019, customers applying for a VAT registration will be asked to specify whether they wish to apply for ‘domestic-only’ or ‘intra-EU’ status.

This new system will drive improved customer service in the form of a speedier registration process for businesses seeking a domestic-only registration. It will also mitigate risks associated with missing traders involved in fraudulent cross-border transactions.

Intra-EU VAT registration 

If you intend to trade with businesses elsewhere in the European Union (EU), you should apply for ‘Intra-EU’ status. This will help ensure that you can make intra-Community acquisitions. You will be required to provide additional information on your VAT registration application form. For example:

  • the customer type (private individuals, business or both)
  • the due diligence measures and checks conducted for current/prospective suppliers in the EU
  • what transport arrangements and supply channels (direct sales, through an intermediary/third party, or both) are in place for making supplies outside the Sate
  • an estimate of the annual and quarterly supply of goods/services is also required.

If your registration is approved, you will be automatically registered on the EU VAT Information Exchange System (VIES).

Domestic VAT registration

If you do not intend to trade with businesses elsewhere in the EU, you should apply for ‘domestic only’ status. Domestic VAT registration is sufficient for trading within the State and with non-EU countries. Domestic-only customers may at any time apply for ‘intra-EU’ status.

What if I am already registered for VAT before 15 June 2019?

If you were already VAT-registered prior to 15 June 2019, you are automatically treated as having ‘intra-EU’ status. You are not required to contact Revenue, unless you want to change your status to ‘domestic-only’.

If you are registered for ROS you must log on to ROS and ‘Manage Tax Registrations’ to amend from ‘intra-EU’ status to ‘domestic-only’ status. If you are not ROS registered, send a MyEnquiry on the matter under the heading ‘Tax Registration/Cancellation’ and an appropriate sub heading.

Further guidance contains more detailed information on the new Two-Tier VAT registration process.