Ireland VAT Information: rates, registration number

This guide is for e-commerce companies that sell online via web stores or at marketplaces to Irish consumers.

VAT Standard rate

The standard VAT rate in Ireland in 2023 is 23% (since March the 1st 2021).

VAT Reduced rate

13,5%

Certain products and services are eligible for the special reduced rate, including:

Сertain fuels;
Сertain building services;
Repair services;
Cleaning and maintenance services (generally);
Certain photographic supplies;
The importation of certain works of art and antiques;
The supply of food and drink (excluding alcohol, soft drinks, and bottled water) in the course of catering;
The supply, using a vending machine, of food and drink that would otherwise be zero-rated;
Hot take-away food and hot tea and coffee;
Hotel lettings, for example, guesthouses, caravan parks, or camping sites;
Admissions to cinemas, theatres, certain musical performances, museums, art galleries, or exhibitions;
Amusement services of the kind normally supplied in fairgrounds or amusement parks;
Hairdressing services;
The supply of live horses, other than those normally intended for use in the preparation of foodstuffs or agricultural production;
Hire of horses;
Supply of greyhounds;
Certain printed matter, such as brochures, leaflets, catalogs, or printed music (different rates apply to books and newspapers).

The second reduced rate of Value-Added Tax (VAT) applies only to certain goods and services, including:

Periodicals;
Certain eBooks and periodicals (excluding those which wholly or predominantly are devoted to advertising, or consist wholly or predominantly of audio or video content);
The provision, by a person other than a non-profit making organization, of facilities for taking part in sport.

The zero rates of Value-Added Tax (VAT) apply only to newspapers and defibrillators.

See the summary of the EU VAT rates.

Thresholds

From the 1st of July 2021, the distance selling thresholds were withdrawn and replaced by a unified threshold of €10,000 for all EU members.

In other words, VAT should be charged at the VAT rate of the customer’s country of residence by companies whose annual taxable cross-border turnover is over €10,000.

Deductible VAT

If goods or services were used to make taxable supplies in Ireland, VAT in input invoices might be credited. Examples include:

VAT paid at custom clearance with your EORI number;
VAT paid to Irish suppliers.

Registration procedure

When a company has the obligation to register, the owners will be required to complete and submit a VAT registration form online to Revenue’s Online Services (ROS), along with supporting documentation:

Trade register extract;
VAT certificate;

If the company is appointing a local tax agent or Fiscal Representative, then a Letter of Authority or Power of Attorney is.

Tax representative

There is no need to appoint fiscal representative in order to handle all formalities related to VAT registration and filling.

Keeping records

Records about performed transactions must be kept in order to check the correctness of tax returns and payments. The retention period for the records is ten years.

VAT payment date

You must pay VAT by the 19th day of the month following the end of each period.

Filing VAT returns

Your company has to report its VAT position by filing periodical VAT returns on a two-monthly basis by the 19th day of the following month. Other tax periods are also available under specific conditions.

Effective since 1 January 2015.

The Finance Act (23 December 2014) brings the place of supply to Ireland on services when a customer is a non-taxable person established or domiciled in Ireland, the supplier is outside the EU and the service is effectively used and enjoyed in Ireland.

VAT Standard rate

The standard VAT rate in Ireland in 2023 is 23%.

VAT Reduced rates

13,5% books, accommodation;
9% newspapers;
4,8% livestock.

VAT calculation peculiarity

The VAT return must be completed in Euros, irrespective of what currency was applied when making the supply. If you use a currency other than Euros when making supplies, the exchange rate that must be used is the European Central Bank rate applicable on the last day of the calendar quarter to which the return relates. That exchange rate must also be applied where any amendments are made to the original return.

However, if, during the calendar quarter, for commercial accounting or other business reasons, you convert the foreign currency into Euros using an agreed daily or other periodic rate and you record these Euros amounts in your business accounts, you may use these figures to complete your quarterly VAT return.

Threshold

An annual €10,000 turnover threshold up to which the place of supply of relevant supplies of cross-border TBE services remains in the Member State where the supplier is established. This threshold is only applicable if a supplier is established within the EU.

Pieces of evidence

To identify customer locations, merchants have to collect at least two items on non-contradictory evidence. And if two of them are in Ireland, the customer may be determined as Ireland:

Customer’s permanent address;
Billing address (bank or electronic payment operator);
IP address;
Telephone number;
The location of the customer’s fixed landline through which the service is supplied to him;
Other commercially relevant information.

E-services list

A digital product is any product that’s stored, delivered, and used in an electronic format. These are goods or services that the customer receives via email, by downloading them from the Internet, or through logging into a website, in particular:

E-books, images, movies, and videos, whether buying a copy from Shopify or using a service like Netflix. In tax language, these products are in a category usually called, «Audio, visual, or audio-visual products»;
Downloadable and streaming music, whether buying an MP3 or using a service like Sound Cloud or Spotify. Of course, these products also fall in the audio category;
Cloud-based software and as-a-Service products, such as Software-as-a-Service (SaaS), Platform-as-a-Service (PaaS), and Infrastructure-as-a-Service (IaaS);
Websites, site hosting services, and internet service providers;
Online ads and affiliate marketing;
Online auctions.

Registration procedure

VAT registration is effective from a date agreed to by your local tax district and you after your completed application has been received by the Tax Authority. The effective date will not be earlier than the beginning of the taxable period during which the application was made.

Applicants whose business is not established in the State should submit a paper version of the following forms:

TR1(FT) registration form for individuals;
TR2(FT) registration form for limited companies.

As a general rule, the following documents will be requested but depending on the individual company and its activity there may be follow-up questions or requests for additional documents:

Copy of the extract from the national trade register in your country (less than 3 months old);
The document serves as proof of your company’s bank account details abroad.

Keeping records

A company must retain the following information:

The Member State of consumption to which the services are supplied;
The type of services supplied;
The date of the supply;
Any subsequent increase or reduction of the taxable amount;
The Value-Added Tax (VAT) rates apply;
The amount of VAT payable indicating the currency used;
The date and amount of payments received;
Any payments on account received before the supply of the service;
Where an invoice is issued, the information contained on the invoice;
Names of the customer, where known;
The information used to determine the place where the customer is established has his or her permanent address or usually resides.

The information must be recorded in such a way that it can quickly and easily be made available by electronic means. The records must be retained for a period of ten years from the end of the year in which the supply was made.

VAT payment date

Quarterly VAT for a non-resident company is due on the 20th of the month following the period.

Filing VAT returns

VAT returns are due quarterly. At the end of each quarter, you have 20 days to file and pay whatever you owe:

20 April, for the first quarter ending 31 March;
20 July, for the second quarter ending 30 June;
20 October, for the third quarter ending 30 September;
20 January, for the fourth quarter ending 31 December.