When You Need to Register for VAT in Ireland

Value-Added Tax (VAT) is a tax on the supply of goods and services within the European Union. In Ireland, businesses that have an annual turnover above certain thresholds must register for VAT. If you’re a business owner wondering whether or not you need to register for VAT in Ireland, read on for more information. Our online VAT calculator makes it easy to add and remove VAT from Irish prices. Click the button after typing the price inclusive or exclusive of VAT.

VAT Registration Thresholds

In Ireland, businesses must register for VAT if their annual turnover exceeds €75,000. As of January 2021, the standard rate of VAT in Ireland is 23%. This means that any goods and services purchased by customers are subject to an additional 23% tax. Businesses must then remit this tax to Revenue Commissioners each quarter. Even if a business does not exceed the €75,000 threshold at the start of the year, it may still be required to register for VAT later if its turnover surpasses this amount during the year.

Exemptions from VAT Registration

However, there are some exemptions from registering for VAT in Ireland. For example, businesses whose supplies are either zero-rated (such as food products) or exempt (such as medical services) do not need to register for VAT unless they exceed €37,500 in sales during a 12-month period. There are also certain types of services that cannot be registered for value-added tax—these include insurance services, financial services, and gambling activities.

Benefits of Registering for VAT

Registering your business for value-added tax can be beneficial because it allows you to reclaim taxes on purchases made by your business from other EU countries. Additionally, having a valid Irish registration number makes it easier to expand your customer base across Europe as many customers will only deal with companies who have valid registration numbers from their own country’s revenue authorities. Finally, registering your business with Revenue Commissioners can help establish credibility—customers will often view your company as more reputable when you have valid registration numbers listed on invoices and other documents related to your business transactions.


Business owners must decide whether or not they should register their company for Value Added Tax (VAT) in Ireland depending on their annual turnover and the type of service offered. If a company’s annual turnover exceeds €75,000 or they offer certain types of services such as insurance or financial advice then they must usually register their company with Revenue Commissioners in order to stay compliant with Irish law and regulations regarding taxation matters.

Although registering can seem like an added burden at first glance it can actually provide numerous benefits such as being able to reclaim taxes on purchases made by one’s business from other EU countries plus establishing credibility among customers due to having valid registration numbers listed on all official documents related to one’s business transactions making it easier when expanding one’s customer base across Europe. Ultimately it is up to individual business owners whether or not they wish to take advantage of these potential benefits but doing so may end up paying off in the long run!

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