Types of Online Businesses in Ireland
Different online business models have varying VAT obligations, registration requirements, and compliance needs.
E-commerce Store
Selling physical products online with shipping. Complex VAT rules for EU sales and inventory management required.
Digital Services
Software, apps, online courses, consultancy. Service VAT threshold €42,500. Special B2B/B2C VAT place of supply rules.
Marketplace Seller
Selling on Amazon, eBay, Etsy. Platform may collect VAT on your behalf. Still need Irish VAT registration for compliance.
Online Business Setup Checklist (2025)
Complete step-by-step checklist for launching your online business in Ireland.
Phase 1: Legal Foundation (Weeks 1-2)
Business Structure & Registration
Register limited company for liability protection and credibility. Essential for payment processing
Data Protection Registration
Register with Data Protection Commission if processing personal data (€35 annual fee)
VAT Registration Strategy
Register early for EU sales compliance and professional credibility with suppliers
Phase 2: Digital Infrastructure (Weeks 2-4)
Website & E-commerce Platform
Build website with Irish-compliant terms, privacy policy, and VAT-ready checkout system
Payment Processing
Setup merchant account with Stripe, PayPal, or Adyen. Ensure VAT compliance on receipts
EU VAT Compliance System
Implement automated VAT calculation for EU sales and OSS registration if needed
Phase 3: Operational Setup (Weeks 3-6)
Business Bank Account & Finance
Open online-friendly business account. Setup accounting software with e-commerce integration
Insurance & Legal Protection
Professional indemnity, cyber liability, product liability (if selling goods), legal expenses
Fulfillment & Customer Service
Setup shipping, returns process, customer support system, and order management
Phase 4: Marketing & Launch (Weeks 4-8)
SEO & Content Strategy
Optimize for Irish market, create valuable content, local SEO for Irish searches
Digital Marketing Setup
Google Ads, Facebook/Instagram advertising, email marketing, social media presence
Analytics & Optimization
Google Analytics, conversion tracking, A/B testing setup, performance monitoring
EU VAT Compliance for Online Businesses
Online businesses face complex EU VAT rules. Understanding these is crucial for compliance and avoiding penalties.
B2C Sales (to Consumers)
Goods (E-commerce)
- • Irish VAT if customer in Ireland
- • Distance selling thresholds apply
- • €10,000 threshold per EU country
- • OSS registration recommended
Digital Services
- • Customer's country VAT rate
- • From first €1 of sales
- • OSS registration required
- • Two pieces of evidence needed
B2B Sales (to Businesses)
Goods & Services
- • Reverse charge mechanism
- • 0% VAT if valid EU VAT number
- • Customer pays VAT in their country
- • EC Sales List required
Validation Required
- • VIES validation of VAT numbers
- • Invoice must show reverse charge
- • Keep validation evidence
- • Monthly EC Sales Lists
Automate EU VAT Compliance for Your Online Business
PayVat automatically handles EU VAT compliance for online businesses. OSS registration, real-time VAT calculation, customer location detection, and automated EC Sales Lists.
Online Business Startup Costs Ireland (2025)
Realistic budget breakdown for launching an online business in Ireland.
Basic Online Store
Professional Store
Enterprise Store
Monthly Operating Costs
Plus inventory costs for product-based businesses and staff costs as you scale.
Get Your Online Business Setup PlanCommon Online Business Mistakes to Avoid
Learn from mistakes that cost Irish online businesses thousands in penalties and lost revenue.
Mistake: Ignoring EU VAT Rules
Not registering for OSS when selling digital services to EU consumers, or incorrectly applying VAT rates to EU sales.
Penalty: Up to 100% of VAT due + €4,000 per missed return
Mistake: Poor Data Protection Compliance
Not registering with DPC, inadequate privacy policies, no cookie consent, failing to secure customer data properly.
Risk: GDPR fines up to €20M or 4% of global turnover
Mistake: Inadequate Payment Security
Using non-PCI compliant payment systems, storing card details, insufficient fraud protection, poor checkout security.
Cost: Chargebacks (€15-25 each) + potential €10,000+ fraud losses
Mistake: Manual Financial Management
Trying to track multi-currency sales, varying VAT rates, and platform fees manually without integrated accounting.
Impact: Significant time on admin + accuracy errors costing money
Ready to Launch Your Online Business in Ireland?
Get your complete online business setup with automated EU VAT compliance from day one.
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