Who should register for VAT?
Persons required to register solely because of goods or services acquired from abroad
Usually the following persons would not need to register for Value-Added Tax (VAT) in the state:
- Non VAT registered businesses
- Exempt businesses such as banks
- Public bodies such as local authorities, State agencies and semi-State bodies
- Farmers, fishers or race horse trainers.
But they may have to register and account for VAT, for received taxable services from outside the State or Intra-Community Acquisitions.
Exempt persons and certain non-taxable persons acquiring goods within the EU
Exempt persons and certain non-taxable persons are obliged to register and account for VAT in certain situations. Such situations include where they buy or are likely to buy, goods from other Member States. You need to register when the goods exceeds, or are likely to exceed €41,000 in any 12 month period.
Flat-rate farmers, fishers and race-horse trainers may be required to register in respect of receiving such goods, subject to the relevant threshold. They can retain their unregistered status in respect of their farming or fishing activities.
You may not reclaim VAT if you are an exempt or non-taxable person.
Exempt persons and certain non-taxable persons receiving taxable services from abroad
Exempt persons and certain non-taxable persons must register and account for VAT if they receive taxable services from abroad. This obligation arises irrespective of the value of those services.
Flat-rate farmers, fishers and race-horse trainers need to register if they receive such services. They can retain their unregistered status in respect of their farming or fishing activities.
You may not reclaim VAT if you are an exempt or non-taxable person.
Paying VAT on services from abroad
You must pay VAT on the invoiced amounts at the appropriate Irish VAT rate to Revenue in your periodic VAT return. You may qualify to reclaim the VAT at the same time.
By passing your VAT number to the supplier, you will avoid paying VAT in the other Member State.
Next: Who may elect to register for VAT?