Types of Service Businesses in Ireland
Service businesses have lower startup costs but specific professional requirements and VAT obligations.
Professional Services
Accounting, legal, consulting, architecture. Requires professional qualifications and indemnity insurance.
Technical Services
IT support, web development, digital marketing, engineering. Skills-based with project billing.
Personal Services
Health, fitness, beauty, education, cleaning. Often requires certifications and premises licenses.
Service Business Setup Checklist (2025)
Complete step-by-step checklist for launching your service business in Ireland.
Phase 1: Foundation & Qualifications (Weeks 1-3)
Business Structure Selection
Sole trader for simple services, limited company for growth and liability protection
Professional Qualifications
Verify required certifications, professional body membership, continuing education requirements
VAT Registration Decision
Consider early registration for credibility and to reclaim setup costs (typically €2,000-8,000)
Phase 2: Legal & Compliance (Weeks 2-4)
VAT Registration & Compliance
Essential for service credibility. Early registration enables cost recovery and professional standing
Terms of Service & Contracts
Professional service agreements, liability limitations, payment terms, intellectual property clauses
Data Protection Compliance
GDPR compliance for client data, DPC registration if processing personal data (€35/year)
Phase 3: Operations & Systems (Weeks 3-6)
Business Banking & Finance
Professional business account, payment processing for invoices, expense tracking systems
Invoicing & Time Tracking
Professional invoicing software with VAT compliance, time tracking for billable hours
Workspace Setup
Home office, co-working space, or professional premises. Consider client meeting requirements
Phase 4: Marketing & Client Acquisition (Weeks 4-8)
Professional Website & Portfolio
Showcase expertise, case studies, testimonials, clear service descriptions and pricing
Network & Referral System
Professional associations, local business networks, referral partnerships, LinkedIn presence
Content Marketing Strategy
Blog, social media, speaking engagements, thought leadership to demonstrate expertise
Service Business VAT in Ireland
Service businesses have a lower VAT threshold but complex cross-border and B2B rules to navigate.
Service VAT Thresholds & Rates
VAT Registration Threshold
Annual turnover threshold for services (vs €85,000 for goods)
Standard VAT Rate
Most professional and technical services
Exempt Services
Financial, insurance, medical, education services
Cross-Border Service Rules
B2B Services
Reverse charge: Customer pays VAT in their country (with valid VAT number)
B2C Services
Place of supply rules: Often where customer is located (complex rules apply)
Digital Services
EU Mini One Stop Shop (MOSS) registration for digital services to consumers
Property Services
VAT charged where property is located (not customer location)
Automate Service Business VAT Compliance
PayVat handles complex service VAT rules automatically. B2B reverse charge validation, place of supply calculations, cross-border compliance, and professional invoicing.
Service Business Startup Costs Ireland (2025)
Service businesses have the lowest startup costs of all business types in Ireland.
Sole Trader Service
Limited Company
Professional Practice
Monthly Operating Costs
Service businesses scale primarily through time and expertise, not inventory or equipment.
Get Your Service Business Setup PlanService Business Success Strategies
Proven strategies to build a profitable service business in Ireland's competitive market.
Strategy: Specialise and Premium Pricing
Focus on a specific niche where you can command premium rates. Deep expertise in a narrow field beats generalist approaches.
Result: 2-5x higher hourly rates than generalist competitors
Strategy: Value-Based Pricing Over Hourly
Price based on client outcomes and value delivered, not time spent. Package services into fixed-price offerings.
Impact: 40-60% higher profit margins and predictable revenue
Strategy: Build Recurring Revenue Streams
Develop ongoing service relationships: monthly retainers, maintenance contracts, subscription models.
Benefit: Predictable cash flow and 3x higher business valuation
Strategy: Systematise and Scale
Document processes, create templates, build systems that allow you to deliver consistent quality without working more hours.
Growth: Enables hiring team members and geographic expansion
Ready to Launch Your Service Business in Ireland?
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