A Comprehensive Guide to Charging VAT in Ireland, the EU, and Internationally

Value Added Tax (VAT) is a crucial aspect of doing business, not just in Ireland but also within the European Union (EU) and on an international scale. As a reputable tax consulting company in Ireland, TAS Consulting Limited understands the complexities of VAT regulations and the importance of compliance. In this article, we will provide a comprehensive guide on how to charge VAT in Ireland, the EU, and internationally.

Registration:

In Ireland, businesses that exceed or are likely to exceed an annual turnover of €37,500 (€75,000 for distance sellers) must register for VAT.
Voluntary registration is also possible for businesses with lower turnover, which may be advantageous for reclaiming VAT on expenses.
VAT Rates:

Ireland has multiple VAT rates, including the standard rate of 23%, reduced rates of 13.5% and 9%, and a zero rate for certain goods and services.
Invoicing:

VAT invoices must contain specific information, including the seller’s and buyer’s details, VAT number, invoice date, a unique invoice number, and a breakdown of VAT amounts.

VAT MOSS:

VAT Mini One Stop Shop (MOSS) allows businesses that provide digital services to consumers in multiple EU countries to report and pay VAT in one member state.
Distance Selling:

When selling goods to consumers in other EU countries, businesses must be aware of distance selling thresholds, which trigger VAT obligations in the customer’s country.
Intra-Community Supplies:

VAT-exempt intra-community supplies require the supplier to obtain the customer’s VAT number and report the transaction via Intrastat returns.

Exporting Goods:

When exporting goods outside the EU, you can usually zero-rate the supply, but strict documentation and proof of export are necessary.
Importing Goods:

Import VAT is payable on goods entering the EU. Businesses can recover this VAT through periodic VAT returns.
Services to Non-EU Countries:

The VAT treatment of services to non-EU countries depends on the nature of the service and the customer’s location. It’s essential to determine the VAT liability accurately.
VAT Reclaims:

Many countries allow foreign businesses to reclaim VAT on expenses incurred while doing business within their jurisdiction. Requirements vary, and proper documentation is crucial.

Navigating the intricacies of VAT in Ireland, the EU, and internationally is a complex task. Ensuring compliance and optimizing VAT processes can be challenging for businesses of all sizes. At TAS Consulting Limited, we specialize in helping businesses understand and manage their VAT obligations effectively. Our expert team can assist you in registering for VAT, filing returns, and ensuring compliance, both within Ireland and on the international stage. Contact us today to benefit from our extensive knowledge and experience in VAT consultancy.

If you have any queries, or would like specific advice, then please do not hesitate to contact a member of our team.

call us on +353 (0)1 442 8230, 00353 851477625 or email moh@tasconsulting.ie