Country Guide: Ireland


Looking to expand your e-commerce business to Ireland, then look no further, here is AVASK's guide to VAT in Ireland:

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Country Profile: Ireland

Irish E-commerce facts:

Population 4.88 million
(January 2020)
Currency: Euro (€)
Number of e-commerce users: 3.6 million
(January 2020)
Revenue in e-commerce market: £2.4 billion
Estimated market growth: 8.7% to £3.35 billion by 2024

Irish thresholds and additional summary:

Distance Selling Threshold (DST) €35,000
Intrastat Thresholds:

Dispatches:
€635,000

Arrivals:
€500,000

VAT number format: IE 1234567ZY
VAT return period:
Bi-monthly 
VAT return deadline 19th of the month following period end
Annual VAT filing deadline: 23rd of the month following the end of tax year
EC sales lists reporting Monthly or quarterly

VAT in the Republic of Ireland

Ireland is a member of the European Union (EU) and draws up its tax rules according to the laws or directives issued from Brussels by the EU. The current VAT directive applies to all 27 member states of the European Union, and it governs the rules on VAT compliance, and in some part, covers the setting of VAT rates.

As an EU member state, Ireland is obliged to implement the VAT directives, which provides guidance on VAT. Where there is a conflict, the European Union’s directive takes precedence. Ireland is a member of the European single market economy and uses the Euro (€) as its currency.


VAT registration in Ireland

Both EU and non-EU businesses may trade in Ireland without establishing a local presence. This is known as non-resident VAT trading. There is no VAT threshold in Ireland for the registration of non-resident traders, but you will need one to record transactions and your Irish customers will want proof that you have obtained one.

There are strict rules on the situations where VAT registration is permitted. Common scenarios that require Irish VAT registration include:

  • Importing goods into Ireland;
  • Organising live events, conferences, etc. in Ireland;
  • Holding goods in a warehouse in Ireland as stock for resale;
  • Buying goods within Ireland that are subsequently re-sold in-country;
  • Selling goods from Ireland to other EU member states;
  • Distance-selling to private individuals in Ireland, e.g. internet retailing or trading through an e-commerce platform.

Registering for VAT in Ireland takes place from the beginning of the next taxable VAT period, two months after the date that the application was received by the Irish Revenue Commissioners.

Irish VAT compliance

There are detailed rules controlling the recording and processing of Irish transactions for VAT purposes. This includes guidelines on:

  • Irish invoice requirements;
  • When to issue a Irish tax invoice;
  • Foreign currency reporting;
  • Credit notes and corrections;
  • Correcting entries from prior returns;
  • Which accounting records must be maintained.

VAT rates in Ireland

VAT Rate % Rate
Standard Rate 23%
Reduced Rate

13.5%
9%
4.8%

Zero Rate 0%

Read more about International VAT and Compliance:

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