Last updated: Dec 08, 2022
VAT registration is a high-risk area for the Revenue Commissioners because of the potential for bogus traders to register for the purpose of obtaining VAT-free goods or to falsely obtain VAT refunds. Revenue therefore introduced two-tier VAT registration, separating lower risk registrations (domestic only) from higher risk ones (Intra-EU). Companies applying for a VAT registration to the Revenue Commissioners must specify which tier they wish to apply for.
When registering a company with Incorpro, you can choose to register for domestic only or Intra-EU VAT.
Companies not undertaking any Intra-EU trade should apply for 'domestic only' status. This is a simplified application process and VAT registration is usually granted without requiring further evidence.
The company will not be registered on the VAT Information Exchange System (VIES), so third parties in the EU will not be able to verify your company's VAT registration. As a result, goods and services received from EU suppliers will not be zero-rated for VAT.
The company VAT Return filing obligations are not impacted by the two tiers. It must file VAT returns and make payment of VAT when due.
Companies with a domestic only status may at any time apply for Intra-EU status, at which point they will be asked to provide additional details (see below). When registering a company for Intra-EU VAT, Incorpro will first register the company for domestic only VAT and then, once completed, apply for Intra-EU VAT registration.
Companies intending to trade with businesses elsewhere in the EU should apply for Intra-EU status, which will enable them to make intra-Community acquisitions at the zero-rate of VAT. Companies granted Intra-EU status will be registered automatically for VAT Information Exchange System (VIES) reporting obligations.
Companies applying for 'Intra-EU' status are required to provide additional details on their application forms, including information related to transport arrangements, the nature of supplies and acquisitions, and due diligence measures undertaken to establish the bona fides of customers and suppliers.
In addition, further information is requested by Revenue in order to satisfy them that there is Evidence of Trading. In anticipation of registering your company for Intra-EU VAT you should be prepared to answer the questions below that are often queried by The Revenue Commissioners on Intra-EU VAT applications.
If the directors are not resident in Ireland, details of employees who are running the business in the State.
The following items may be used to support the argument that the company is trading/intending to trade.
Incorpro can apply to Revenue for Intra-EU VAT registration and communicate with Revenue on the company's behalf. We will help you understand what documents you need to provide to Revenue to speed up the process. However, Revenue will reject an application if the company cannot adequately demonstrate its intention to trade. It is for this reason that we can't guarantee that the application to register your company for Intra-EU VAT will be successful, nor is our fee dependent on a positive outcome.
If you would Incorpro's help with your VAT registration or if you would like to speak to us about any of your accounting and tax needs, call us on 01-4429409 or contact us more contact information.
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