How do you register for VAT?

Updated on May 20, 2022

Register online through ROS

Revenue Online Service allows you or your tax advisor to set up a Value-Added Tax (VAT) registration for your business (ROS). To take advantage of this benefit, you must have a business in the state.

What registration forms should you complete online?

The following online forms must be filled out by applicants who already have a business in the state:

Individuals, single proprietors, partnerships, and trusts should use the TR1 registration form.
For limited corporations, use the TR2 registration form.

Can you submit a paper application form?

You or your tax advisor will get all paper applications that might have been done electronically. A request to process the application online will be included with the returned application.

An exemption to this rule exists for those who are unable to use ROS and must complete and submit an application on paper. The Contact Us page of our website has all of our contact information.

Applicants who do not have a physical presence in the state should submit the following applications in paper form:

To register individuals, sole traders, trusts and partnerships with the TR1(FT) application form
Form TR2(FT) for the registration of limited liability corporations.
The appropriate form can be sent to:

Registration for Business Taxes Office of the Revenue Commissioners P.O. Box 1 Wexford Ireland

When will the VAT registration take effect?

After Revenue receives your completed application, your VAT registration becomes effective on a date mutually agreed upon by you and your local tax district.

Your registration will take effect as soon as you submit your application for tax-exempt status at the beginning of the taxable year.

Within 30 days of a change in your personal information, you must notify your local tax office.

How do you re-register for VAT?

If your VAT registration has been cancelled and you wish to re-register, you can do this through Revenue’s eRegistration facility.

Once you register for VAT, you must submit tax returns and payments electronically. See the Mandatory efiling section for more information on paying and filing your tax online.

Acquisitions from other EU Member States

Overview

When items are sent or transported between companies in different EU member states, this is known as “intra-community supply and acquisition” (EU). Two transactions are assessed to have taken place for VAT purposes:

acquisition within the community (ICA) and supply within the community (ICS).
The ICA of commodities is the subject of this section. To put it another way, an ICA refers to a firm in one EU Member State purchasing goods from a business elsewhere. As if he or she had made the supply, the buyer is responsible for the VAT in these transactions.

In this part, you’ll learn about:

What is VAT self-accounting?
When you are forced to register for VAT as a result of your ICAs, the information you must supply to Revenue on your ICAs is critical.
When you buy a new mode of transportation from another EU Member State, VIES and Intrastat returns must be filed.

Next: Self accounting for Value-Added Tax (VAT)

Self accounting for Value-Added Tax (VAT)

Rules for intra-community acquisition (ICA) require the buyer to self-account in reverse charge fashion. Therefore, while purchasing goods from other EU countries, the business customer is responsible for the payment of Value Added Tax (VAT).

An intra-Community supply has been made by the provider in another Member State (ICS).

To put it another way:

A Member State where the supply is dispatched as an ICS has zero-rated the supply.
VAT is charged to the buyer at the time of purchase.
It is the buyer’s responsibility to include VAT on their VAT return. The VAT rate that is applicable is the rate that is in effect in the Member State where they reside.
Buyers must report any subsequent sales of goods to account for any VAT paid on the ICA that they may be entitled to as an input credit in their VAT return.
Example
In January 2016, a dealer in Ireland purchased €5,000 worth of items from a German company. The products were bought in order to make taxable supplies. To qualify for a zero-rate in Germany, the German company does not charge VAT on intra-Community supply to Ireland.

Traders in Ireland must charge VAT at the usual rate, for example €1,150 (5,000 at 23 percent) at the standard rate. Even so, providing the purchase is VAT-deductible, the Irish dealer can claim an input credit of €1,150 for their taxable supply.

There have been two taxable events that have taken place:

1) the zero-rate intra-community supply provided by the German supplier

the purchase of goods and services in Ireland at an appropriate rate for that country’s purchasers.

Traders’ VAT 3 return for January/February 2016 for Irish businesses
Types of Taxes Subject to VAT
T1 deductible in full (VAT on sales)
One thousand and fifteen Euros (T2) (VAT on purchases)
T3: €1,150 T3 (VAT payable)
The T4 is 0 (VAT repayable)
Assumption 1: Null (value of goods sent to other EU countries)
E2 0 (value of goods received from other EU countries)
€5,000
Customers in Ireland are charged VAT at 23 percent when they purchase items from an Irish dealer, which is then paid to Revenue in the normal course of business.

Next: What information on your ICAs must you submit to Revenue?

What information on your ICAs must you submit to Revenue?

Value-Added Tax (VAT) 3 returns must include information on all intra-Community acquisitions (ICAs). In the T1 (sales) box, you must charge VAT at the appropriate Irish VAT rate.

Depending on whether the purchase is deductible for VAT reasons, you may be able to claim the VAT in the T2 (purchases) box.

The E2 (ICAs) box must include the value of the goods purchased.

Your annual Return of Trading Details (RTD) form must now include information on your ICAs.

When is VAT due on an ICA?

VAT is due on the following dates:

On the 15th day of the month after the month in which the purchase was made, if an invoice was not issued.
The VAT is due in the VAT return for the taxable period that begins on the date the VAT is due.

The item’s selling price is used to calculate the VAT. For foreign-currency invoices, the rate of exchange in effect at the time the VAT is payable should be utilised.

Next: When are you required to register solely because of intra-Community acquisitions (ICAs)?

When are you required to register solely because of intra-Community acquisitions (ICAs)?

Businesses registered for Value-Added Tax (VAT) must self-account for all intra-Community acquisitions (ICAs), and there is no separate threshold for this.

The exception to this rule is, however,

VAT is not applicable to the supplies of firms that are completely exempt from it or other entities.
ICAs of goods with a value of more than €41,000 must be registered if the value is expected to exceed €41,000 for a continuous period of 12 months.

These include, but are not limited to, the following enterprises and organisations:

institutions such as health care providers and non-profit organisations.
It is imperative that these organisations pay VAT on their ICAs in accordance with applicable rates. As a general rule, these organisations are not allowed to deduct VAT, including VAT incurred on the ICAs.

Example
In January 2020, an insurance firm engaged in entirely exempt operations but VAT registered for ICAs purchases €5,000 worth of products from a French company.

In its VAT Return, the insurance business reports €1,150 (5,000 x 23%) in VAT. There is no way for the insurance company to claim credit for any input. The insurance firm is obligated to pay €1,150 to the government.

The January and February 2020 VAT 3 return
T1 (VAT on sales) €1,150 T2 (VAT refund) (VAT on purchases)
No tax payable in T3 and €1,150 in T4 (VAT repayable)
Assumption 1: Null (value of goods sent to other EU countries)
E2 0 (value of goods received from other EU countries)
€5,000

What are VIES and Intrastat?

Value-added tax (VAT) registered traders that purchase products and make intra-Community deliveries have additional reporting obligations in the following regimes:

Internal Revenue Service (IRS) Intrastat.

VAT Information Exchange System (VIES)

Checks can be undertaken in each Member State on the legitimacy of zero-rating claims using the VIES process. Unreported movements of zero-rated items between Member States can be detected with its assistance.

To verify the VAT registration numbers of their customers in different EU Member States, VIES is available to businesses. Customers can verify the validity of VAT numbers by using this feature. Intra-EU trade is solely covered by the VIES system.

In order for VAT-registered businesses to report their EU sales, they must file periodic returns. VIES reporting requirements are explained in greater detail in additional guidelines.

Intrastat

Stats on the movement of commodities, not services, between EU member states are collected by Intrastat. The general concept of statistics on intra-EU commerce is irrespective of the ownership of the commodities. Their physical movements are the only thing that matters here..

Intrastat is discussed in greater depth in additional guidelines.

Next: Intra-Community acquisitions (ICAs) of alcohol products