VAT for E-Commerce in Ireland

Foreign companies supplying goods or services in Ireland are required to register for VAT without any exceptions.

E- Commerce retailers based in the EU who makes sales online EU Customers are required to follow distance selling rules. There are certain thresholds at present for each EU country. Once retailer exceed the threshold for the customer’s country, he must then switch to the domestic tax rate of that country and ensure you are VAT registered in that member state.

For example, the distance selling limit is €75,000 in Ireland and in Germany, it is €100,000. So, if a retailer is VAT registered in Ireland and it began distance selling to Germany, the retailer will still file and apply for VAT refunds in Ireland up until it hits the €100,000 in sales for the year.

Significant changes to the VAT rules applying to e-commerce transactions, particularly online sales of goods, will take effect across the EU on 1 July 2021.

  • Currently, there is a Vat Registration threshold in each EU country which is likely to be abolished in each EU State. The impact of this would be that retailers making sales online in the EU will be required to collect local VAT in the member state to which the goods are shipped (assuming the value of goods is above 10,000 Euros. Where Sellers has no establishment, VAT due will be re, minted through a single EU-wide VAT return known as the One-Stop-Shop (“OSS”).
  • There will be new VAT reporting procedures in relation to the preparation and filing of One Stop Shop returns on a quarterly basis.
  • Electronic interfaces which “facilitate” sales of goods to consumers in the EU may have additional VAT collection and reporting obligations

HOW TAS CAN HELP for VAT for E-Commerce in Ireland ?

  • Assess your business’s VAT reporting and the implications of its activity, including identifying potential VAT collection and reporting obligations in new jurisdictions, and determining VAT rates for products in relevant jurisdictions.
  • Review existing contracts and terms & conditions to help manage the VAT risks associated with the new requirements

VAT REGISTRATION IN IRELAND

TYPE TURNOVER THRESHOLD PER ANNUM
Supplying goods or products 75,000 Euros
Supply for services 37,500 Euros

 

Foreign companies supplying goods or services in Ireland are required to register for VAT without any exceptions.

 

VAT REGISTRATION PROCESS

The VAT in Ireland is registered with Revenue. In order to register, the interested parties must complete specific forms, which depend based on the legal nature of the party. Thus, in the case of sole  traders or partnerships, the VAT registration in Ireland is completed through the TR1 registration form, while in the case of companies, the TR2 registration form is required.

 

WHAT TAS OFFERS:

  • Specialised outsourced VAT compliance.
  • Access to local VAT expertise
  • Speedy VAT registrations and ongoing filings, Intrastat, EC Sales Listing, as well as fiscal representation and access to special VAT import deferment schemes.
  • Expertise and assistance in the case of questions from the local tax authorities.
  • We have specialist expertise in UK and international VAT, including international VAT for overseas traders

 

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