Taxes and VAT
The following is provided for information purposes only on tax in Ireland. All further queries regarding this information should be directed to the competent authority- Revenue.ie
Income Tax, Corporation Tax, Relevant Contract Tax, Employer PAYE/PRSI
In Ireland, the following categories are required to register with Revenue:
▪ An individual carrying on a taxable activity e.g. a trade or profession or a farmer
▪ A principal/sub contractor in the construction, meat processing or forestry industries
▪ An individual with income from any of the following sources –
Income not taxed under PAYE e.g. payments on a commission basis or private teaching
Rental income (Case V)
Income from abroad e.g. foreign pensions, dividends
Maintenance income under a separation agreement.
▪ A company or partnership
▪ A trust or an unincorporated/voluntary body
▪ A registered charity or sporting body claiming “exempt” status
▪ A foreign business operating in Ireland.
▪ Any entity paying emoluments/pensions/fees to an employee or Director
Allocation of Registration Numbers- PPSN
An individual must have a PPSN (Personal Public Service Number) to register for tax. The PPSN is allocated by the Department of Employment Affairs and Social Protection. Appointments to apply for a PPSN can be made through their website, MyWelfare.
A Company must be incorporated in the Companies Registration Office before it can register for tax.
Registration Online Services and Forms
Registering online is the fastest and most efficient way of registering for tax. You can manage your registrations through Revenue's eRegistration facility. You can register for Income Tax (IT) in myAccount through Manage my Record and Tax Registrations. You will then be able to register any other tax that you want to register for. Alternatively, you can use Revenue Online Service (ROS) to register for Income Tax, Corporation Tax, Employer Pay As You Earn (PAYE), Environmental Levy, Value Added Tax (VAT) and Relevant Contracts Tax (RCT).
Once you are registered, your status on ROS will be updated and you can then file all payments and returns online. Your Tax Reference Number will be the same as your PPSN.
Value-Added Tax (VAT) is a tax on consumer spending. Most goods and services supplied in Ireland are subject to VAT. Goods imported into Ireland from outside the European Union (EU) are also subject to VAT: this is charged by Customs at the point where the goods enter the State.
Who is obliged to register for VAT?
A person who is required to charge VAT in the State is referred to as an accountable person.
An accountable person is a taxable person (for example, an individual, partnership, company) who supplies taxable goods or services in the State.
Taxable persons are obliged to register if their turnover exceeds certain limits and are engaged in any of the following activities:
▪ The supply of taxable goods or services effected within the state
▪ The acquisition of goods from other member states of the European Union (Intra Community Acquisitions)
▪ The importing of goods into the state
▪ Mail order or distance sales into the state.
Persons engaged in the above activities may choose to register for VAT if their turnover is less than the set limits but are not obliged to do so.
Threshold/Turnover limits for Registration
Registration is obligatory where turnover limits are exceeded during a 12-month period (except for distance sales). The limits are as follows:
€37,500 in the case of persons supplying services only.
€37,500 for persons supplying goods liable at the reduced or standard rates which they have manufactured or produced from zero rated materials.
€35,000 for persons making mail-order or distance sales into the State.
€41,000 for persons making acquisitions from other European Union Member States .
€75,000 for persons supplying goods.
€75,000 for persons supplying both goods and services where 90% or more of the turnover is derived from supplies of goods.
A non-established person supplying taxable goods or services in the State is obliged to register and account for VAT irrespective of the level of turnover.
For further information relating to VAT, including contact details, please see Revenue.ie