What is Value Added Tax (VAT)?
VAT is a tax levied on the value of goods and services at each stage of production or distribution. The majority of goods and services that we buy as consumers have VAT included in the price.
Once you’ve completed your VAT registration in Ireland, you’ll be required to charge VAT on the goods and services you sell. In addition, you must account for VAT in your VAT returns and pay your VAT liability to Revenue every two months.
VAT rules differ depending on whether you’re selling goods or services. Furthermore, different guidelines apply to how VAT is charged in Ireland, the EU, and internationally.
Non-resident VAT trading:
Foreign traders (sole traders, partnerships or companies) supplying goods and services may register for VAT Ireland even though they are not registered as an entity in Ireland. This arrangement is known as non-resident VAT trading.
Ireland is part of EU hence follows the EU VAT rules, and is part of the EU single market economy. VAT Directives are issued by the EU which lay out the principles of the VAT regime to be adopted by the member states, including Ireland. These Directives take precedence over the local legislation.
Following are the common situations/scenarios where registration is required
- importing goods into the EU via Ireland
- buying and selling goods within Ireland
- holding goods in a warehouse in Ireland as stock
- selling goods from Ireland to other EU countries
- acquiring goods from other EU countries into Ireland
- distance selling to private individuals in Ireland from another EU country, e.g. internet retailing.
Usually, there is a threshold to register a company for VAT in Ireland but if it is a foreign company such as LLC from the USA and wants to operate in Ireland without setting up a legal entity in Ireland, they can do it but there will be no threshold applicable and VAT is obligatory to register in Ireland.
Your Tax advisor based in Ireland can apply for VAT for Non-Irish business.
TAS Consulting has helped foreign companies to get an Irish VAT and has facilitated with tax authorities.
TR2 Form F2 will be required to be filled out and send to revenue authorities. Below is how this form Looks like.
Relevant sections can be filled out and sent to revenue addresses given in this form.
Registering for Irish VAT generally takes three to four weeks, although this can vary.
How to Fill out TR2 Form
There is a manual form in PDF which requires specific information about foreign company who wants to register for VAT in Ireland
VAT Compliance in Ireland
There are detailed rules controlling the recording and processing of Ireland transactions. These include guidlines on:
- Requirements around invoice
- Foreign currency invoicing and reporting
- Correcting errors in previous returns
- What records must be kept
If you’re a foreign company, here’s how to get a VAT number in the EU.
Each EU member state has its own VAT system. Each of these systems generates a VAT number that applies to sales made within Europe but not in the country where your company is based.
We’ve outlined the steps to obtain a VAT number using Ireland as an example to help you better understand the process.
1. Select a European Union country and register with their national VAT MOSS. Because it is all in English and has an easy-to-use design, the Irish VAT MOSS is the best choice for most foreign businesses. (You have the option of registering in any of the 28 countries that make up the European Union.)
2. Fill in your company’s information as well as your bank account information.
3. After that, fill in your personal contact details.
4. You’ll be asked about your company’s VAT history after that.
5. The portal will then redirect you to a summary page where you can review all of the data you entered. Make sure everything is in order!
6. Submit your work. That’s all there is to it!
That concludes the application procedure. Your VAT number will be sent to you either electronically or by mail.
If you’re a foreign company, here’s how to get a VAT number in the EU.
Each EU member state has its own VAT system. Each of these systems generates a VAT number that applies to sales made within Europe but not in the country where your company is based.
We’ve outlined the steps to obtain a VAT number using Ireland as an example to help you better understand the process.
1. Select a European Union country and register with their national VAT MOSS. Because it is all in English and has an easy-to-use design, the Irish VAT MOSS is the best choice for most foreign businesses. (You have the option of registering in any of the 28 countries that make up the European Union.)
2. Fill in your company’s information as well as your bank account information.
3. After that, fill in your personal contact details.
4. You’ll be asked about your company’s VAT history after that.
5. The portal will then redirect you to a summary page where you can review all of the data you entered. Make sure everything is in order!
6. Submit your work. That’s all there is to it!
That concludes the application procedure. Your VAT number will be sent to you either electronically or by mail.
TAS Consulting are here to provide all VAT compliance and custom clearance services for non resident companies. Contact us today!
You can also Visit our Pages for more information regarding VAT services
Get a VAT Number to sell in EU – For Online Sellers
E-Commerce retailers based in the EU who make sales online EU Customers are required to follow distance selling rules. There are certain thresholds at present for each EU country. Once the retailer exceeds 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.
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