VAT is one of the most misunderstood areas for new Irish businesses. Register too late and you face backdated liabilities; register too early and you add admin and cost before you need to. This guide explains the Irish VAT thresholds, how registration works through Revenue's ROS system, and what your ongoing obligations look like.
What is VAT and who charges it?
Value Added Tax (VAT) is a consumption tax charged on most goods and services in Ireland. VAT-registered businesses charge VAT on their sales (output VAT), reclaim VAT on their purchases (input VAT), and pay the difference to Revenue.
Irish VAT registration thresholds
You are generally required to register for VAT once your turnover exceeds — or is likely to exceed within any 12-month period — the relevant threshold. There are two main thresholds: one for services and a higher one for goods.
| Type of supply | Registration threshold |
|---|---|
| Supply of services | Lower threshold |
| Supply of goods | Higher threshold |
| Non-established / distance sellers | May be required to register regardless of turnover |
Should you register voluntarily?
Even below the threshold, some businesses choose to register voluntarily. This can make sense if your customers are themselves VAT-registered businesses and you incur significant VAT on your costs, because you can reclaim input VAT.
- Register voluntarily if you have large upfront VATable costs you want to reclaim.
- Consider staying unregistered if you sell mainly to consumers and want to keep prices competitive.
- Factor in the extra administration of bi-monthly VAT returns.
How to register for VAT
- Ensure your company is registered with Revenue and has ROS access.
- Complete the VAT registration through ROS, providing business and trading details.
- Demonstrate that you are trading or intend to trade — Revenue may query speculative registrations.
- Receive your VAT number and begin charging VAT from your effective date.
Filing VAT returns
Most Irish businesses file VAT returns every two months (bi-monthly) through ROS. Some qualify for less frequent filing. Each return reports your output VAT, input VAT and the net amount payable or reclaimable.
- Keep valid VAT invoices for all sales and purchases.
- Reconcile your VAT account before each return.
- File and pay by the ROS deadline to avoid interest and penalties.
- Watch for reverse-charge and intra-EU transactions, which have special rules.
Common mistakes to avoid
The pitfalls we see businesses run into most often on this topic.
- Leaving registration too late and facing backdated VAT on past sales.
- Registering speculatively without evidence of trading, which Revenue may reject.
- Reclaiming input VAT without valid VAT invoices to support the claim.
- Missing bi-monthly filing deadlines and incurring interest and penalties.
- Getting intra-EU and reverse-charge transactions wrong on the return.
Frequently asked questions
How Stratancy can help
Stratancy advises on whether and when to register for VAT, handles the ROS registration, and manages your bi-monthly VAT returns so they are always accurate and on time. We set up your cloud accounting to capture VAT correctly at source, reconcile every period, and handle the trickier areas like intra-EU trade and reverse charges. The result is clean VAT compliance without the stress, on predictable fixed monthly pricing.