Value Added Tax (VAT) is an indirect tax imposed on products and services in Ireland. As a trader or service provider business, you may be required to collect VAT on Sales and then pay to Revenue on a bi monthly basis.
It is the responsibility of a business to charge, collect and pay VAT liability to Revenue.
This is a matter of judgment and tax advice is suggested however, revenue has prescribed certain limited as to when business needs to register for VAT.
The term “VAT rates” refers to the percentage of VAT that you will charge on your product or service.
For VAT registration you can use ROS revenue online system or send a form posted or emailed to Revenue for VAT registration.
Revenue assesses your application and may grant a vat number or may refuse the application.
If application for VAT is refused, still business can re apply vat number.
Examples when it can be refused.
It can take up to a month after Revenue receives your VAT application before you receive your VAT number, and this is assuming Revenue makes no inquiries.
Before you receive your VAT number, Revenue may require you to answer questions about your business or provide additional evidence. If they do, they will typically give you 30 days to respond to an inquiry, but it is critical that you respond as soon as possible.
For a given time period, a VAT return lists the invoices on which you have charged VAT and the invoices on which you have claimed VAT.
If you are VAT registered, you must file your VAT3 returns by the 19th of the month following the end of each tax period, or by the 23rd if you file via ROS (Revenue Online Service).
The taxable period is a two-month (bi-monthly) period that begins on January 1st.
You must notify the Irish Revenue Commissioners as soon as possible if you wish to cancel your VAT registration. Your VAT registration may be revoked if one or more of the following conditions are met:
If you do business with a lot of other businesses that charge VAT, you may want to register for VAT. The drawback is that you must submit bi-monthly VAT returns to Revenue. For a small business, this could be a significant additional expense.
Speaking with one of our experts can assist you in determining whether or not you should complete VAT registration in Ireland.
Are you a newly formed business in need of tax registration? We have a special offer for new Limited Companies that includes accountancy services for just €130+VAT per month for 18 months.
Call +353 1 442 8230, 00353 851477625 or email email@example.com to reach out to our Client Services team.