Types of Retail Businesses in Ireland
Different retail formats have varying setup requirements, costs, and VAT obligations.
Physical Shop
Traditional brick-and-mortar store with walk-in customers. Requires premises license and planning permission.
Online Store
E-commerce business selling products online. Lower startup costs but complex EU VAT rules for cross-border sales.
Market Stall
Temporary or permanent market trading. Requires casual trading license and market authority permits.
Retail Business Setup Checklist (2025)
Complete step-by-step checklist for opening your retail business in Ireland.
Phase 1: Business Foundation (Weeks 1-4)
Business Structure Selection
Limited company recommended for retail (liability protection, credibility). Register with CRO (€125-200)
Business Bank Account
Open business account with merchant services for card payments. Essential for retail operations
VAT Registration
Register early to reclaim VAT on shop fittings, equipment, and initial stock (typically €5,000-15,000)
Phase 2: Premises & Licensing (Weeks 2-8)
Shop Premises License
Apply for commercial premises license with local authority. Required before opening
Planning Permission
Verify premises has retail planning permission. Apply for change of use if needed (€65-700)
Signage Permissions
Apply for advertising display permissions for external signage with local council
Phase 3: Operational Setup (Weeks 4-10)
POS System & Equipment
Install till system, card readers, security, and inventory management software
Insurance Coverage
Shop insurance, public liability (€2M+), employer liability, stock insurance, and business interruption
Staff & Payroll Setup
Register employees with Revenue, setup employee contracts and VAT compliance for staff expenses
Phase 4: Stock & Launch Preparation (Weeks 6-12)
Supplier Agreements
Establish wholesale supplier relationships, negotiate terms, and setup delivery schedules
Initial Stock Purchase
Order opening stock, setup inventory tracking, and implement stock control procedures
Marketing & Launch
Local advertising, social media setup, grand opening promotions, and customer loyalty programs
Retail VAT Compliance in Ireland
Retail businesses must comply with complex VAT rules covering different product categories and sales channels.
Common Retail VAT Rates
Retail VAT Benefits
Input VAT Recovery
Reclaim VAT on shop fittings, equipment, stock purchases, and business expenses
Wholesale Purchasing
Access to VAT-free wholesale prices from suppliers, improving profit margins
Business Credibility
VAT number establishes credibility with suppliers and business customers
Cross-Border Trading
Required for EU sales over €10,000 and B2B transactions
Automate Your Retail VAT Compliance
PayVat integrates with retail POS systems to automatically track mixed VAT rates, manage stock VAT, handle EU sales rules, and file bi-monthly returns. Perfect for retail complexity.
Retail Business Startup Costs Ireland (2025)
Realistic budget breakdown for opening a retail store in Ireland by category.
Small Shop (50m²)
Medium Shop (100m²)
Large Shop (200m²)
Plus Ongoing Monthly Costs
Include 3-6 months working capital (€15,000-75,000) for initial trading period.
Get Your Retail VAT Setup PlanCommon Retail Business Mistakes to Avoid
Learn from costly mistakes that shut down 35% of retail businesses within 3 years.
Mistake: Poor Stock Management
Overstocking slow-moving items or understocking popular products. Not tracking stock turns or implementing reorder points.
Cost: 30-50% of retail failures due to cash flow tied up in dead stock
Mistake: Ignoring VAT Recovery Opportunities
Not registering for VAT early to reclaim setup costs, or incorrectly applying VAT rates to different product categories.
Cost: €5,000-20,000 in non-recoverable VAT and compliance penalties
Mistake: Inadequate Security Measures
No CCTV, basic till security, inadequate stock protection. Retail theft averages 1.4% of turnover in Ireland.
Cost: €1,400 theft loss per €100,000 turnover + insurance claims
Mistake: No Digital Presence
Relying solely on walk-in customers without online presence, social media, or click-and-collect options.
Impact: Missing 60% of customers who research products online first
Ready to Launch Your Retail Business in Ireland?
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