How to obtain an Irish VAT Number
In this edition of our Newsletter, Client Services Manager Gwen Nic Íomhair has a Questions and Answer session with Danny Cox in order to get clarification on a frequently asked question from clients “Can we get an Irish VAT number?”
Gwen: Danny, is it possible to get an Irish VAT number for an Irish incorporated company?
Danny: In short the answer is yes, however the Irish Revenue do normally require additional information over and above that contained in the Form TR2.
Gwen: Can you give an explanation of the options open to clients and what they need to do when applying?
Danny: Obtaining VAT numbers in Ireland has been very difficult in recent years, as the Irish Revenue were very concerned about the abuse of VAT numbers and were very stringent when issuing them.
There are three basis for registering a company for VAT in Ireland, these are:
1. Voluntary Registration
2. Exceeding the turnover threshold for either Goods or Services
3. When an Irish Company is in receipt of Fourth Schedule Services
In respect of point 1, VAT numbers requested under the Voluntary Registrations basis are only granted in very limited cases.
In respect of point 2, where the company in one tax year exceeds a specific threshold for turnover, they are obliged to register. The legal thresholds in Ireland are currently Euro 75,000 for goods and Euro 37,500 for services.
In respect of point 3, a Fourth Schedule Service is defined as being any professional service as laid out within the Fourth Schedule of the VAT Acts and includes Accountancy, Legal and Consultancy services received from another EU country that would be treated as a VATable service in that country.
Most of our clients company’s will be in receipt of Fourth Schedule Services, and the law REQUIRES a company in receipt of Fourth Schedule Services to register.
Gwen: What must an Irish Company do to register under Fourth Schedule Services?
Danny: Like any tax registration, a form TR2 must be completed, however the Irish Revenue may require certain additional information before granting the VAT number.
The standard additional information requested by the Irish Revenue is:
• Invoices and/or Contracts to show the Irish Company is in receipt of Fourth Schedule Services and carrying on a trade
• Proof that the Irish company has a working director or employee
• Proof that the Irish company owns or leases business premises or an explanation why the company does not have business premises
• Proof that the Irish company has the expertise to carry on the business
• The names of the Beneficial Owner or Beneficial Shareholder of the Irish Company
The above information can be supplied to the Irish Revenue on a covering letter when submitting the TR2 or alternatively the client can wait for the Irish Revenue to issue a letter requesting any additional information.
It is a requirement for a company to have an Irish bank account in order to apply for an Irish VAT number.
City Trust is able to open Irish bank accounts with a number of Irish banks and would be happy to assist clients with this.
Should you have any further queries regarding applying for Irish VAT numbers, please do not hesitate to contact your usual City Trust advisor or Danny Cox directly on Tel: 00353 1 675 3144 or dannycox@citytrust.ie