What are the VAT registration thresholds in Ireland for 2025?

The VAT registration thresholds in Ireland for 2025 are €42,500 for services and €85,000 for goods in any rolling 12-month period. You must register within 30 days of exceeding these thresholds.

When do I need to register for VAT in Ireland?

You must register for VAT within 30 days if your turnover has exceeded the thresholds or you expect to exceed them in the next 30 days. You can also register voluntarily to reclaim input VAT or for business credibility.

What documents do I need for VAT registration in Ireland?

You need a Tax Reference Number (TRN), evidence of business activity (invoices, contracts), business bank account details, identification documents, proof of business premises, and for companies, your CRO certificate of incorporation.

How long does VAT registration take in Ireland?

VAT registration typically takes 15-30 days from submission of a complete application. Revenue may request additional information which can extend the process. Online applications through ROS are processed faster.

What happens if I register for VAT late in Ireland?

Late VAT registration results in penalties of 5% of tax due (minimum €125, maximum €12,695), back-dated VAT liability from when you should have registered, and 8% annual interest on all amounts owed.

How to Register for VAT in Ireland (2025) | PayVat

VAT Registration Thresholds 2025

You must register for VAT when your taxable turnover exceeds these thresholds in any rolling 12-month period.

€42,500

Services threshold

Includes:

• Professional services (legal, accounting, consulting)
• Digital services and software
• Marketing and advertising services
• Repair and maintenance services
• Training and education services
• Financial and insurance services

Key point: This is for services where the place of supply is Ireland, regardless of where you're physically located.

€85,000

Goods threshold

Includes:

• Physical products and merchandise
• Food, drinks, and groceries
• Electronics and appliances
• Clothing and accessories
• Books, magazines, and media
• Tools, equipment, and machinery

Key point: Applies to goods supplied within Ireland, including distance sales from other EU countries.

Mixed Business Alert

If you supply both goods and services, monitor both thresholds separately. You must register when either threshold is exceeded, not the combined total.

When to Register

Timing is critical. Register too late and face penalties. Register strategically and optimize your VAT position.

Mandatory Registration

You MUST register within 30 days if:

• Turnover has exceeded the threshold
• You expect to exceed threshold in next 30 days
• You're making taxable supplies in Ireland
• You're acquiring goods from other EU countries

Penalty for Late Registration

• 5% of tax due (minimum €125, maximum €12,695)
• Back-dated VAT liability from threshold date
• Interest at 8% per year on all amounts
• Potential investigation and further penalties

Voluntary Registration

You MAY register early if:

• You want to reclaim input VAT on startup costs
• Customers expect you to be VAT registered
• You're planning rapid business growth
• You want to appear more established

Benefits of Early Registration

• Reclaim VAT on pre-registration expenses
• Professional credibility with B2B customers
• No surprise compliance requirements
• Better cash flow management planning

Registration Process

Follow these steps to register correctly and avoid delays or rejections.

Get Your Tax Reference Number (TRN)

You need a TRN before applying for VAT registration. If you don't have one, apply through Revenue's MyAccount or submit Form TR1 (individuals) or TR2 (companies).

For Individuals/Sole Traders

• Complete Form TR1
• Provide PPS number and ID
• Processing time: 5-10 days

For Companies

• Complete Form TR2
• Provide CRO number and incorporation cert
• Processing time: 7-14 days

Complete VAT Registration Application

Apply through ROS or submit paper forms. Online applications are processed faster and are less prone to errors.

Required Information

• Business name and address
• Nature of business activities
• Expected annual turnover
• Date business commenced

• Bank account details
• Accounting period dates
• Principal place of business
• Contact details

Documents to Provide

• Evidence of business activity
• Sample invoices or contracts
• Proof of business premises
• Director/owner identification

• Bank statements (business account)
• Business plan or projections
• CRO certificate (companies)
• Professional body membership

Submit Application and Await Processing

Revenue will review your application and may request additional information. Response time is typically 15-30 days.

If Approved

• VAT number issued (IE + 7 digits + letter)
• VAT certificate posted to you
• Return periods assigned (usually bi-monthly)
• First return due date notified

If Queries Raised

• Respond quickly with requested info
• Delays can push effective date back
• Keep monitoring ROS inbox
• Follow up if no response within 30 days

Set Up Compliance Systems

Once registered, implement systems to stay compliant and avoid penalties.

Update invoices with VAT number and correct rates

Set up deadline reminders for VAT returns

Create system for tracking input VAT

Create PayVat account for automated compliance

Special Situations

Some business situations have specific VAT registration requirements or considerations.

Non-Resident Businesses

Businesses located outside Ireland but making taxable supplies here.

• Must register if threshold exceeded
• No fiscal representative required
• Need Irish bank account or payment system
• Additional compliance reporting may apply

Distance Sales (E-commerce)

Selling goods online to Irish customers from other EU countries.

• €10,000 EU-wide threshold applies
• Consider OSS (One Stop Shop) scheme
• B2C vs B2B rules differ
• Platform sales may have special rules

Exempt Businesses

Businesses normally exempt but receiving services from abroad.

• May need to register for reverse charge
• Common for financial, medical, education
• Registration required regardless of value
• Limited input VAT recovery rights

Acquisitions from EU

Acquiring goods from other EU member states.

• €41,000 annual threshold
• Automatic registration above threshold
• Self-accounting for acquisition VAT
• VIES reporting requirements

Common Mistakes to Avoid

Leaving registration too late

Monitor turnover monthly. Register when you expect to hit threshold, not after you've exceeded it.

Insufficient evidence of trade

Provide real invoices, contracts, or evidence of actual business activity. Revenue checks thoroughly.

Mixing personal and business

Keep business and personal finances completely separate from day one of trading.

Vague business description

Be specific about what you do. "Consultancy" is too vague. "IT security consulting" is better.

Not setting up ROS access

Get ROS set up immediately. You'll need it for filing returns and avoiding penalties.

Ignoring ongoing compliance

Registration is just the start. Set up systems to stay compliant with returns and payments.

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Last updated: August 12, 2025