VAT for Non-Resident Companies or Business in Ireland

VAT is a tax levied on the value of goods and services at each stage of production or distribution. The majority of goods and services that we buy as consumers have VAT included in the price. Once you’ve completed your VAT registration in Ireland, you’ll be required to charge VAT on the goods and services you sell. In addition, you must account for VAT in your VAT returns and pay your VAT liability to Revenue every two months. VAT rules differ depending on whether you’re selling goods or services. Furthermore, different guidelines apply to how VAT is charged in Ireland, the EU, and internationally.

Foreign traders (sole traders, partnerships or companies) supplying goods and services may register for VAT Ireland even though they are not registered as an entity in Ireland. This arrangement is known as non-resident VAT trading. Ireland is part of EU hence follows the EU VAT rules, and is part of the EU single market economy. VAT Directives are issued by the EU which lay out the principles of the VAT regime to be adopted by the member states, including Ireland. These Directives take precedence over the local legislation.

Non-resident businesses must register for VAT in Ireland if they:

Engage in distance selling to Ireland and exceed the relevant thresholds.

Supply goods or services in Ireland and exceed the €75,000 threshold for goods or €37,500 for services.

Import goods into Ireland.

Provide digital services to Irish consumers.

Non-resident businesses can register for VAT through:

Postal: Completing and submitting the TR2 or TR1 form to the VAT Registration Unit.

Online: Using the Revenue Online Service (ROS) if they have an Irish tax agent.

To register for VAT, you generally need:

Additional documentation may be requested based on your specific circumstances.

Proof of business registration in your home country.

A detailed description of your business activities in Ireland.

Evidence of your business address and contact details.

Zero Rate: 0% (applies to certain goods and services such as exports)

The frequency of VAT returns depends on your turnover:

Annually: For businesses with lower turnover or if they are under the annual VAT scheme.

Quarterly: For businesses with a turnover above certain thresholds.

Yes, non-resident businesses can claim VAT refunds on certain expenses incurred in Ireland. This can be done through:

The EU VAT refund system for businesses based in EU member states.

The VAT refund procedure for non-EU businesses.

If you discover an error on a VAT return:

Seek Advice: Consult with a VAT specialist or tax advisor for guidance on rectifying the mistake and avoiding future errors.

Correct the Mistake: Amend the return by submitting an adjusted return or making the necessary corrections in your next return.

Notify Revenue: Inform the Revenue Commissioners of the error and any corrections made.

Non-resident businesses must register for VAT in Ireland if they:

Engage in distance selling to Ireland and exceed the relevant thresholds.

Supply goods or services in Ireland and exceed the €75,000 threshold for goods or €37,500 for services.

Import goods into Ireland.

Provide digital services to Irish consumers.

Non-resident businesses must register for VAT in Ireland if they:

Engage in distance selling to Ireland and exceed the relevant thresholds.

Supply goods or services in Ireland and exceed the €75,000 threshold for goods or €37,500 for services.

Import goods into Ireland.

Provide digital services to Irish consumers.