Revenue announces new two-tier VAT registration system

Marie Brennan ACCA, 24th July 2019

The Revenue Commissioners have provided updated guidelines to the VAT registration process which took effect on the 15th June 2019. The process has been updated to include two status options; applicants must now select either “domestic only” status or “intra-EU” status when applying for a VAT Registration Number for Irish businesses.

Domestic Only Status- This status applies to taxpayers who are not involved with any intra-EU trade.

Intra-EU Status- This status applies to taxpayers who intend to trade within the EU.

The new requirement is part of the Two-Tier VAT Registration system that the Revenue are implementing to increase response times for those applying for “domestic only” status. Applications for “intra-EU” status may require additional information to be provided which could result in increased processing times. Revenue has announced that the new system should be available by mid-September 2019.

Taxpayers who have attained a VAT Registration number prior to the Two-Tier VAT Registration system will be automatically treated as having “intra-EU” status and are not required to contact Revenue or take any further steps.

Revenue has reminded Irish VAT registered traders who are involved with intra-EU trade that they are obligated to file VAT Information Exchange System Returns (VIES Returns) periodically. These returns must detail their supplies to customers who reside in the EU regardless of the transactional values. Traders with annual imports from EU member states which exceed €500,000 or exports that exceed €635,000 must also complete Intrastat returns.

Company Bureau can assist your company to obtain a VAT number. Follow this link for more information on Tax Registration for an Irish Limited Company or contact us today to proceed with an application.