Registering for VAT in Ireland

Irish businesses can't deduct VAT paid on entertainment from their VAT bills.

VAT in Ireland stands for value added tax. It is similar to sales tax in the United States. VAT is added to most services and goods in Ireland. It is usually included in the listed price, not added to the price at the cashier. Ireland has five VAT categories, as of 2010: 21 percent, 13.5 percent, 5.2 percent, 4.8 percent and 0 percent. A business must charge VAT based on the service it supplies. It then has to pay the VAT to the Irish Revenue Commissioners. Registering for VAT in Ireland requires some paperwork, but isn't complicated.

Things You'll Need

• Registered business

Instructions

1. Check to see if your company's turnover meets the threshold for required VAT registration. According to the Irish Revenue Commissioners, those supplying services must register for VAT if their turnover is over 37,500 euros. If you supply goods, you must register for VAT when a turnover of 75,000 euros reached. Ireland exempts certain goods and services from VAT.

2. Check what VAT rate your business has to apply, by contacting the Irish Revenue Commissioners on 061-212-799 or visiting its website. 21 percent is the standard VAT rate. Farmers do not have to register for VAT, but must charge VAT at 5.2 percent if they do. Livestock, horse hire, and live greyhounds fall into the 4.8 percent VAT category, according to Accountingnet.ie. The Irish Revenue Commissioners states that certain food and food supplements are not subjected to VAT. For example, fish oils used as a dietary supplement have zero VAT.

3. Submit your VAT registration paperwork to your regional Revenue Commissioners office. Sole proprietorship and partnerships need to submit Form TR1 and incorporated companies need to submit Form TR2. The Revenue Commissioners has both forms available for download on its website. After processing, a VAT number is assigned to you.

4. Return VAT3 forms by the due date stated on the form. The Office of the Collector-General issues VAT3 forms every two months. You must fill in all of your incoming and outgoing VAT transactions for the two months indicated on the form.

5. Pay VAT owed, to the Irish Revenue. You must pay VAT within 19 days of the VAT period stated on the VAT3 form.

References

• Revenue Commissioners Ireland: Current & Historic Rates of VAT
• Revenue Commissioners Ireland: VAT Registration FAQs
• Revenue Commissioners Ireland: What is the rate of VAT on food supplements?
• Accountingnet.ie: Value Added Tax (VAT)

Resources

• Finfacts Ireland: Taxation
• Citizens Information Ireland: Value Added Tax