At each step of manufacturing or marketing, the price of products and commodities is increased by the value-added duty. As consumers, the majority of the products and services we acquire have VAT already factored into the price.
Once you have successfully registered for levy in Ireland, you are required to add VAT to the price of all goods and services you offer. Additionally, you must include value-added duty in your forms and pay Revenue your duty regularly (typically every two months).
This guideline explains how to apply for a tax identification in Ireland and covers all the necessary information.
Registration
Generally speaking, once the company is established, you do not need to file for a levy. Before beginning to charge tariffs on your products and operations, your company must comply with several requirements.
It’s crucial to understand that both sole proprietors and corporate bodies are qualified to qualify for VAT. You must register for a levy if you fit any of the following descriptions:
- Your company might need to apply for value-added duty if you acquire products from outside Ireland and use those products inside Ireland.
- Receiving products worth more than €41,000 from other Eurozone countries, also referred to as intracommunity purchases.
- providing products or services for more than €75,000 or €37,500, respectively.
If you want to register for value-added duty even though you don’t meet the requirements listed above, you might voluntarily decide to do so. If you work with numerous other companies that charge levies, you may be able to submit a certification request. The drawback of this is that you must submit levy returns to Taxation every two months. For a small company, this can mean a significant additional expense.
Registration process
You must complete a tax certification document and send it to authorities to obtain a VAT id in Ireland. The tax department will want proof of your transaction with Ireland in the levy enrollment process.
Depending on the statistics you provide, authorities determine whether to approve or disapprove your request. Even if the department denies your request, you might still be able to obtain a tax number. Obtaining the necessary paperwork may take some time, but you may always resubmit your request.
Requirements
To file for the tariff in Ireland, you must provide evidence of the following:
- Commercial activity in the nation;
- Physical workplace here; and
- Legal residency of the sole trader.
Internet forms for registration
The following forms should be filled out online by candidates who have a company formed in the country:
- TR1 application form for people, sole proprietorships, corporations, and alliances;
- TR2 application form for limited firms.
Time required
Without any inquiries from Treasury, it may take up to 28 working days after submission of your tariff request before you obtain your tax identification number.
Value-added duty returns
Receipts for which you have collected VAT are listed along with those for which you have levied VAT in a tariff return for a specific timeframe.
If you are VAT licensed, you have until the 19th day of the month after the conclusion of each fiscal period to submit your VAT reports.
Cancellation
You must provide the Irish Taxation Officers with prompt notice if you desire to terminate your levy registration. If your business has shut down or if your sales have dropped below the necessary limit, your tariff license may be revoked. The cancellation of value-added duty may also be caused by a shift in the firm.
Rejection of application
If you don’t employ any native workers or interact with any native clients, the tax office could reject your application. The application may also be turned down if the director of the company doesn’t have legal permanent residence in Ireland.
You may also find these articles helpful
Breakdown of Republic of Ireland company registration fees and expenses
Guide on obtaining EORI number in Ireland
Selling a company in the Republic of Ireland – full guide
