VAT Registration Thresholds for Freelancers
Freelancers providing services have different VAT thresholds than businesses selling goods.
Service VAT Threshold
Annual turnover threshold for freelance services
Registration Timing
Mandatory Registration
Must register within 30 days of exceeding €42,500 threshold
Voluntary Registration
Can register early for credibility and expense recovery
Benefits of Early Registration
Reclaim VAT on equipment, software, training costs
Complete Freelancer VAT Compliance Guide
Everything Irish freelancers need to know about VAT registration, invoicing, and compliance.
1. VAT Registration Process
Obtain Tax Reference Number (TRN)
Apply through myAccount on revenue.ie or submit Form TR1 (individuals)
VAT Registration Application
Submit through ROS with evidence of trading and projected turnover
Receive VAT Number
Typically issued within 15-30 days. Start charging VAT from registration date
2. VAT Invoicing Requirements
Required Invoice Information
Reverse Charge for B2B EU Services
For services to EU businesses with valid VAT numbers, apply 0% VAT and state "Reverse charge applies"
3. Allowable Business Expenses
Claimable Expenses (with VAT)
- • Office equipment & software
- • Professional development courses
- • Business travel & accommodation
- • Professional services (legal, accounting)
- • Marketing & advertising
- • Business insurance
- • Stationery & office supplies
- • Business phone & internet
Home Office Expenses
- • Utilities (proportional usage)
- • Rent (business use portion)
- • Heating & lighting
- • Property insurance (business portion)
- • Repairs & maintenance
- • Cleaning (office area)
Keep detailed records and calculate business use percentage
4. VAT Return Filing
Most freelancers file every 2 months
Payment due date
ROS filing deadline
Late Filing Penalties
€150 initial penalty + €10/day after 20 days + 8% annual interest on tax due
Cross-Border VAT Rules for Freelancers
Special VAT rules apply when working with international clients.
EU Business Clients (B2B)
Reverse Charge Applies
- • Charge 0% VAT on invoice
- • Client must have valid EU VAT number
- • State "Reverse charge applies" on invoice
- • Client pays VAT in their country
EC Sales List Required
Monthly return listing all EU B2B sales. Due by 15th of following month.
EU Consumer Clients (B2C)
Place of Supply Rules
- • Generally where client is established
- • May need to register for VAT in client's country
- • Digital services follow customer location
- • Consider OSS registration for simplified compliance
Non-EU Clients
Generally zero-rated (0% VAT) as exports of services outside EU.
Essential Tools for Freelancer VAT Compliance
Streamline your VAT compliance with the right tools and systems.
Invoicing & Accounting
- VAT-compliant invoicing software
- Automated VAT calculations
- Expense tracking and categorization
- Digital receipt storage
- Bank reconciliation
VAT Return Filing
- Automated VAT return preparation
- Cross-border validation
- EC Sales List generation
- Deadline reminders and alerts
- Direct ROS submission
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