VAT (Value Added Tax) is a consumption tax charged on most goods and services in Ireland. Whether you're required to register depends on your turnover and the nature of your business. Getting VAT registration right from the start saves you from penalties and ensures you can reclaim VAT on business purchases. This guide explains everything about registering for VAT in Ireland in 2026.
VAT Registration Thresholds (2026)
You must register for VAT if your turnover exceeds or is likely to exceed:
| Business Type | Threshold |
|---|---|
| Supply of goods | €75,000 |
| Supply of services | €37,500 |
| Goods from other EU states (acquisitions) | €41,000 |
| Distance selling to Ireland | €10,000 (EU-wide OSS) |
Important: The threshold is based on turnover (total sales), not profit. You must register once you exceed the threshold — or expect to exceed it — in any consecutive 12-month period.
When Should You Register Voluntarily?
Even if you're below the thresholds, voluntary registration can be beneficial:
- VAT recovery — you can reclaim VAT on business purchases and expenses
- B2B credibility — VAT-registered businesses often prefer to deal with other VAT-registered suppliers
- Approaching thresholds — if you're close to the limit, registering early avoids a retrospective liability
- Importing goods — VAT registration may be needed for customs purposes
Irish VAT Rates
| Rate | Percentage | Applies To |
|---|---|---|
| Standard | 23% | Most goods and services |
| Reduced | 13.5% | Construction, hospitality, newspapers |
| Second Reduced | 9% | Tourism, hospitality (specific items) |
| Livestock | 4.8% | Livestock and greyhounds |
| Zero | 0% | Food, children's clothing, books, exports |
| Exempt | N/A | Financial services, insurance, medical |
How to Register for VAT
- Complete a TR2 form (if registering alongside corporation tax) or a TRCN form for a specific VAT addition
- Submit through Revenue Online Service (ROS)
- Provide your company's CRO number and business details
- Specify your expected turnover and the nature of your supplies
- Revenue will issue your VAT number — typically within 5–10 business days
Our Tax Registration service includes VAT registration alongside corporation tax, PAYE, and other Revenue registrations.
VAT Returns and Payment
- Bi-monthly returns — the standard filing frequency (every 2 months)
- 4-monthly or 6-monthly — available for smaller businesses with Revenue approval
- Annual return — available for very small businesses
- Returns must be filed through ROS
- Payment is due on the 19th of the month following the VAT period (23rd for ROS filers)
VAT for E-Commerce and Online Businesses
If you're starting an online business in Ireland and selling to consumers in other EU countries, you need to understand the One-Stop Shop (OSS) scheme:
- If your EU-wide distance sales exceed €10,000, you must charge VAT at the customer's country rate
- The OSS allows you to file one VAT return in Ireland covering all EU consumer sales
- Register for OSS through Revenue's ROS system
- B2B sales to VAT-registered businesses in other EU states are generally zero-rated (reverse charge applies)
Common VAT Mistakes
- Not monitoring turnover — failing to register when thresholds are exceeded can result in retrospective VAT liability plus penalties
- Charging incorrect rates — ensure you apply the right rate for your goods/services
- Missing return deadlines — late filing attracts interest and surcharges
- Not keeping proper VAT invoices — you need valid VAT invoices to reclaim input VAT
- Ignoring the OSS for online sales — selling to EU consumers without proper VAT compliance risks penalties in multiple countries
Need Help?
VAT can be complex, especially for businesses with international sales. Our tax advisory services and accountant services can help ensure you're fully compliant. If you haven't formed your company yet, start with company formation from just €240.