Not every business requires to be registered for Vat. However, if a business reaches a certain threshold annually, it must register for Vat and must charge vat on sales unless on products or services that are exempt from VAT.
If a business or company has a Turnover (Sales) over €37,500 for the sale of services or €75,000 for the sale of goods then the business must register for VAT.
However, businesses can choose to voluntarily register for VAT.
The disadvantage of this is there will be a compliance burden such as preparing bi-monthly or semi-annual VAT returns that the business is required to be prepared and filed.
In order to be registered for VAT, a business must apply to revenue by filling the relevant form. Your accountant can register you without much form filling or dealing with technical jargon.
Upon application with revenue, they assess the application if a VAT number must be issued. Revenue is reluctant to issue VAT numbers to any business as VAT numbers may be misused. They can accept or reject the application after asking additional questions and information.
Upon the receipt of the application, revenue assess the applicant. Please note it is not the company but the underlying director whose profile or history is checked in order to establish if VAT number must be issued. There are other factors also which determines how quickly VAT number can be issued. With a person with revenue history there is a greater likelihood that VAT number can be issued in 2/3 working days. However, in some cases it could take upto 6 weeks.
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