Value-Added Tax (VAT) registration is obligatory when the VAT thresholds are exceeded or are likely to be exceeded in any 12 month period (except for distance sales). If you are below the thresholds you may elect to register for VAT.
The principal thresholds are as follows:
- €37,500 in the case of persons supplying services only.
- €37,500 for persons supplying goods liable at the reduced or standard rateswhich they have manufactured or produced from zero rated materials.
- €35,000 for persons making mail-order or distance sales into the State.
- €41,000 for persons making acquisitions from other European Union Member States .
- €75,000 for persons supplying goods.
- €75,000 for persons supplying both goods and services where 90% or more of the turnover is derived from supplies of goods.
- A non-established person supplying taxable goods or services in the State is obliged to register and account for VAT irrespective of the level of turnover.
Certain trades are exempt from vat and you should check with an accountant or tax adviser or the revenue regarding this rule. For further information go to www.revenue.ie