Comparing Irish Only VAT Registration to Intra-EU VAT Registration Irish Domestic and Intra-EU VAT Registration

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.

Irish Domestic VAT and Intra-EU VAT Registration
Irish Domestic VAT and Intra-EU VAT Registration

Two-Tier VAT Registration

1. Domestic Only VAT Registration

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.

2. 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.

What are the requirements of Intra-EU VAT Registration?

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.

  • A detailed description of the vatable activity being carried out.
  • Provide confirmation of the business address. If the business address is rented, a signed copy of the lease agreement will be required. (Tax advisor or agents address is not acceptable.)
  • Provide evidence of trading as detailed below.
  • Provide web site details, if applicable.
  • Provide bank account details.

If the directors are not resident in Ireland, details of employees who are running the business in the State.

Evidence of Trading Requested by Revenue

The following items may be used to support the argument that the company is trading/intending to trade.

  • A copy of a contract relating to the supply and receipt of goods or services.
  • An example of sales and purchase invoices already held.
  • Details of customer and supplier lists.
  • Market research, business projections or feasibility studies for the business to be registered.
  • If a state licence is required to enable trading then please a copy of the licence should be provided.
  • Any other documentation that will provide evidence of trade or an intention to trade.

Intra-EU VAT Registration Conditions

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.

Further Guidance and Assistance

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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