VAT in Ireland

1. What is the VAT in Ireland?

VAT was introduced in Ireland on the 1st November 1972. The standard Irish VAT rate is 21% for almost all goods and services. A reduced rate of 9% applies to food and drinks excluding alcohol, admissions to cinema, theatre, museum, sport activities, newspapers, brochures and hairdressing services. Other services are subject to a 13.5% VAT rate in Ireland, such as beauty treatments. Anyway, it has been announced that the Irish government is planning to increase the VAT rate in 2013 and 2014 to 22%, then 23%.

2. How can I get a VAT refund in Ireland?

VAT is refundable for companies that are registered in Ireland. The procedure for getting a VAT refund in Ireland must be performed by the business owner who must submit a signed application form with the Irish Tax Authorities. Original invoices must also be provided. The application is accepted only if the VAT refund refers to taxable activities. The VAT refund in Ireland is received in no more than six months after the submission of the claim.

3. How can I register for VAT in Ireland?

Registration for VAT in Ireland is not compulsory. It is however considered mandatory to register for VAT purposes for companies that have a turnover that exceeds 37,000 EUR in supplying services or 75,000 EUR in supplying goods. Irish companies with an annual turnover that is below these amounts can choose to either register for VAT or not. If they do want to register for VAT, they will be able to claim VAT on purchases. The procedure for VAT registration in Ireland is performed by the founders or by a legal representative appointed by power of attorney. On the basis of a file submitted with the Irish Tax Authorities, the company will be issued a VAT number.

4. How does intra-community VAT work in Ireland?

First of all, companies in Ireland which make intra-community acquisition of goods must register for VAT purposes. When an Irish company that is registered for VAT makes zero-rated supplies for a trader in another EU member state, details of the transactions must be returned to revenue in order to ensure that the intra-community transaction has been properly recorded and accounted for. Irish companies engaged in intra-community transactions must also make a periodic Intrastat return for statistical purposes.