For calculating VAT input credits if registered
VAT Registration Required
Your turnover exceeds the €37,500 threshold for services.
€30,000.00 / €37,500 (80%)
Your projected turnover of €50,000.00 will exceed the threshold. You should register for VAT before reaching €37,500.
Services threshold: €37,500
If your annual turnover from the supply of services exceeds or is likely to exceed €37,500, you must register for VAT. This applies to most service-based businesses including consultants, freelancers, and professionals.
Goods threshold: €75,000
If your annual turnover from the supply of goods exceeds or is likely to exceed €75,000, you must register for VAT. This applies to retailers, wholesalers, and manufacturers.
Mixed supplies
If you supply both goods and services, the lower threshold (€37,500) applies unless at least 90% of your turnover comes from goods, in which case the higher threshold (€75,000) applies.
Revenue Commissioners: You must register for VAT when you exceed the threshold. Registration is done through Revenue Online Service (ROS). You can voluntarily register at any time if below the threshold.
When you need to register, how to do it, and what it means for your business
When do I need to register for VAT in Ireland?
You must register when your annual turnover exceeds or is likely to exceed: €42,500 for services or €85,000 for goods. If you supply both goods and services, the lower threshold (€42,500) applies unless at least 90% of your turnover comes from goods. You must register even if you have not yet reached the threshold but expect to exceed it.
What are the VAT rates in Ireland?
Ireland has four VAT rates: 23% standard rate (most goods and services), 13.5% reduced rate (building work, short-term car hire, some fuels), 9% second reduced rate (newspapers, e-publications, sports facilities), and 0% zero rate (most food, children’s clothing, books, oral medicines). Exports outside the EU are also zero-rated.
How do I register for VAT?
Register through Revenue Online Service (ROS) using the TR1 form (sole trader) or TR2 form (company). You need your PPSN or company registration number, business details, and estimated turnover. Registration usually takes 2 to 4 weeks. Once registered, you get a VAT number starting with IE, which you must show on all invoices.
How often do I file VAT returns?
Most businesses file VAT returns every two months (bi-monthly). The deadline is the 19th of the month following the end of each two-month period (23rd if filing through ROS). Small businesses with an annual VAT liability under €3,000 can apply for 4-monthly or 6-monthly returns. Very small businesses may file annually.
Can I reclaim VAT on business purchases?
Yes. Once registered, you can reclaim VAT on goods and services bought for your business. This includes equipment, office supplies, professional services, and motor expenses (with restrictions on passenger vehicles). You cannot reclaim VAT on food, drink, accommodation, or entertainment expenses. Keep all VAT invoices as proof for at least 6 years.
Should I register for VAT voluntarily?
If your turnover is below the threshold, you can still register voluntarily. This makes sense if you have large VAT-inclusive business expenses and want to reclaim the VAT, or if your clients are VAT-registered businesses who can reclaim the VAT you charge. It does not make sense if most of your customers are consumers who cannot reclaim VAT, as it makes your prices 23% higher.
What is the reverse charge mechanism?
When you buy services from a business in another EU country, the reverse charge applies. Instead of the foreign supplier charging you their country’s VAT, you account for Irish VAT yourself on your VAT return. You charge yourself 23% and (if entitled) reclaim it on the same return, so the net cost is zero. This avoids you having to reclaim VAT from another country.
What happens if I do not register when I should?
If Revenue discovers you should have been VAT-registered but were not, they can back-date your registration. You would owe VAT on all sales since the date you exceeded the threshold, plus interest and possible penalties. You would not have charged your customers VAT during this period, so you would have to pay it from your own pocket. Register promptly to avoid this.
Revenue-Aligned: Based on 2025 Revenue rates and thresholds. For personal advice, speak to a qualified tax adviser.
Disclaimer: This calculator provides estimates based on current HMRC rates and thresholds for the 2025/26 tax year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your individual circumstances. Always consult a qualified accountant or tax adviser before making financial decisions. Read our terms
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