Key takeaways
- Ireland VAT rates: The standard VAT rate is 23%, with reduced rates of 13.5%, 9%, and 4.8%, plus a 0% rate for certain food, medical, and transport services.
- Registration threshold: Businesses must register once turnover exceeds €40,000 for services or €80,000 for goods, or if cross-border sales exceed the €10,000 EU threshold.
- Filing & penalties: VAT returns are filed bi-monthly, and late submissions or payments can lead to fines up to €4,000 plus daily interest charges.
For any business contemplating expansion into Ireland, understanding the intricacies of Value Added Tax (VAT) is crucial. In this guide, we provide a comprehensive overview of the Irish VAT system, including rates, registration, returns, and other essential information to help you navigate this Irish VAT landscape.
What is the Irish VAT rate?
The Irish VAT system consists of several rates and exemptions. There is a standard Irish VAT rate of 23%, three reduced rates of 13.5%, 9%, and 4.8%, as well as a 0% rate. Education, financial services, and health and social welfare are among the services exempt from VAT.
Registering for VAT in Ireland
For resident businesses, the threshold for VAT registration in Ireland is €40,000 for the provision of services or €80,000 for the supply of goods in the previous 12 months. If your turnover exceeds these thresholds, you must register for VAT.
As of July 1, 2021, the distance-selling threshold for all EU member states is €10,000. So, if your business’s annual turnover exceeds €10,000, you will be required to register for VAT in Ireland. You are also liable for VAT in Ireland if you store products in the country or you participate in an FBA (Fulfilled-by-Amazon) program that includes Ireland.
You can register for VAT in Ireland by completing the necessary forms and submitting them to the Irish Revenue Commissioners. Once registered, you will receive your Irish VAT number, which you must use for all VAT-related transactions. The application process typically takes four weeks.
Fiscal representative in Ireland
Non-EU-based companies engaged in taxable activities in Ireland do not have to appoint a fiscal representative.
Irish VAT return filing and penalties
Irish VAT returns are typically filed online via the Revenue Online Service (ROS) and are due by the 23rd day of the month following the reporting period.
The filing frequency is bi-monthly for the majority of businesses, beginning on the first day of January, March, May, July, September, and November. Alternatively, the following taxable periods may apply:
- An annual return for those making equal installments by direct debit.
- Four-monthly returns where a business has an annual turnover of between €3,001 and €14,400.
- Six-monthly returns where a business's annual turnover is €3,000 or less.
Late filing of VAT returns may result in penalties, which can be substantial. There is a default fine of €4,000 for failing to submit a VAT return on time. If your VAT payment is late, you may be subject to interest charges, which can range from 0.0274% to 0.0411% per day, depending on the delay.
Irish Intrastat declarations
Intrastat declarations are mandatory for both resident and non-resident businesses engaged in intra-EU trade. Intrastat declarations should be submitted electronically by the 23rd of the month through the Irish Revenue Commissioners portal.
For standard Intrastat returns, the thresholds are €500,000 for arrivals and €635,000 for dispatches. For detailed Intrastat returns, the thresholds are €6.5 million for arrivals and €9 million for dispatches.
Reverse charge Ireland
In Ireland, the reverse charge mechanism applies to certain transactions, primarily in the context of EU cross-border supplies. This mechanism shifts the responsibility for reporting and paying VAT from the supplier to the recipient of goods or services, with the foreign supplier not needing to be registered for VAT in Ireland.
Frequently asked questions
What is the VAT rate in Ireland?
Ireland’s standard VAT rate is 23%, with reduced rates of 13.5%, 9%, and 4.8% applying to specific goods and services such as food, accommodation, newspapers, and livestock. A 0% rate applies to exports, certain medical supplies, and international transport.
When do I need to register for VAT in Ireland?
Resident businesses must register if annual turnover exceeds €40,000 for services or €80,000 for goods. Non-resident and EU sellers must register if annual cross-border sales exceed €10,000 or if they store goods in Ireland (e.g., via Amazon FBA).
How do I register for VAT in Ireland?
Applications are made to the Irish Revenue Commissioners. Once approved, you’ll receive your Irish VAT number within about four weeks.
Do foreign businesses need a fiscal representative in Ireland?
No. Non-EU businesses are not required to appoint a fiscal representative when registering for VAT in Ireland.
How often must VAT returns be filed in Ireland?
Most businesses file bi-monthly VAT returns via the Revenue Online Service (ROS) by the 23rd of the following month.
Other filing options:
- Annual – if paying equal installments by direct debit
- Four-monthly – turnover between €3,001–€14,400
- Six-monthly – turnover below €3,000
Are Intrastat declarations required in Ireland?
Yes. Intrastat declarations must be filed by the 23rd of the following month if trade exceeds thresholds:
- Standard: €500,000 (arrivals), €635,000 (dispatches)
- Detailed: €6.5 million (arrivals), €9 million (dispatches)
