You know registration is coming. Maybe your turnover is creeping towards the threshold, or a big customer has asked for your VAT number and you don’t have one yet. Either way, you’re now looking at Revenue’s forms and wondering which one applies to you and what half the questions mean.
This guide covers the whole VAT registration process: whether you need to register at all, the difference between Form TR1 and Form TR2, the questions Revenue asks about cash versus invoice basis and EU trade, and how to submit everything through ROS. It’s written for sole traders, partnerships and company directors starting a new business in Ireland.
What does VAT registration in Ireland actually mean for your business?
Value Added Tax (VAT) is a tax on consumer spending, collected by businesses on behalf of the Revenue Commissioners. Once you’re VAT registered, you receive your VAT number and three things change immediately.
- You must charge VAT on your sales of taxable goods and services at the correct VAT rate.
- You must file VAT returns and pay over the collected VAT, normally every two months.
- You can reclaim VAT on most business expenses, which is the upside that makes voluntary registration attractive for some.
That last point matters. For a business buying a lot of stock, software or equipment, the ability to claim back the VAT on purchases can outweigh the admin of filing returns.
Do I have to register for VAT, or can I register voluntarily?
Your business must register for VAT when your turnover from taxable supplies exceeds, or is likely to exceed, the registration threshold in any continuous 12 month period. Since 1 January 2025 the thresholds set by Revenue are €42,500 for services and €85,000 for goods. We’ve broken down how the limits work, including mixed supplies, in our guide to VAT thresholds in Ireland.
If you expect to exceed the VAT threshold, registration becomes mandatory and you should apply before you cross it rather than after. Trading over the limit without registering leaves you owing Revenue VAT you never charged. Not a conversation anyone enjoys.
Below the threshold, you can register for VAT voluntarily. Common reasons to choose voluntary registration:
- You want to reclaim VAT on start-up costs, stock or equipment.
- Your customers are mainly VAT registered businesses, so adding VAT costs them nothing and they expect a VAT number on invoices.
- You trade with suppliers or customers in other EU member states and need to be in the VAT system anyway.
Voluntary registration suits B2B businesses far more than consumer-facing ones. If you sell mainly to the public, registering early just makes you 23% more expensive or cuts your margin. More detail on the mandatory side is in our guide on who needs to register for VAT in Ireland.
Which VAT registration form do I need, TR1 or TR2?
Registration is done through Revenue’s eRegistration service on ROS, the Revenue Online Service. The paper tax registration form still exists, but Revenue only accepts it where you cannot use the online route, for example some non-resident applicants. Which form applies depends on your legal structure:
|
Form |
Who it’s for |
How it’s submitted |
|
TR1 |
Individuals, sole traders and partnerships |
Through ROS eRegistration; paper TR1 only where online registration isn’t possible |
|
TR2 |
Limited companies |
Through ROS eRegistration; paper TR2 only where online registration isn’t possible |
Both forms cover more than VAT. They’re the general tax registration for income tax or corporation tax, employer PAYE and RCT too, so you tick VAT as one of the taxes you’re registering for. Before you start, have these ready:
- Your PPSN (TR1) or company tax reference and CRO number (TR2).
- A clear description of your business activity, plus your trading name and start date.
- Business address, bank account details and expected turnover.
- Supporting evidence of trade, such as contracts, invoices or a lease, in case Revenue asks.
If you’re a company director tackling the company version, we’ve written a separate walkthrough on how to fill out the TR2 form .
What questions does the VAT registration ask, and how should I answer them?
This is the part that catches people out. The VAT section of TR1 and TR2 asks a series of questions that shape how your registration works for years, as Revenue’s registration guidance sets out. Four answers deserve real thought.
Mandatory or voluntary. You state whether you must register because of turnover or are choosing to register. Either way, your expected turnover figure should support the answer; Revenue does compare what you claim with what later appears in your returns.
Cash basis or invoice basis. On the invoice (accruals) basis you account for VAT when you issue an invoice, paid or not. On the cash receipts basis you account for VAT when the money actually lands, which is far kinder to cashflow. The cash basis is generally available where annual turnover is under €2 million, and most small service businesses choose it.
Goods or services, or both. The form asks what you supply because the thresholds and VAT treatment differ between goods and services. Describe your activity in plain terms. “IT consultancy to Irish SMEs” works; “general trading” invites questions.
Domestic-only or intra-EU. Ireland operates a two-tier VAT registration system. Domestic-only registration covers you for trade within Ireland. Intra-EU registration adds you to VIES, the EU system used to validate VAT numbers for cross-border B2B trade. If you buy from EU suppliers or sell to EU business customers, or expect to soon, apply for intra-EU status now and save yourself the rework later.
How do I submit the application, and how long does it take to get a VAT number?
Log in to ROS, open Manage Tax Registrations under eRegistration, select VAT, and complete the questions above. An accountant acting as your agent can apply for a VAT number on your behalf through the same system, which is how we handle it for clients. Keep copies of everything you submit and watch MyEnquiries for follow-up queries.
How long does obtaining a VAT number take? Revenue doesn’t publish a guaranteed timeframe. In our experience, clean online applications often come back within 30 days, while applications with vague activity descriptions or intra-EU requests can take longer because Revenue reviews those more closely. Registration normally takes effect from the date agreed with Revenue rather than retrospectively, so time the application around your first taxable sales.
Once approved, you receive your VAT number, start charging VAT, and file returns for each two-month taxable period. The deadline is the 19th day of the month after the period ends, extended to the 23rd when you file and pay through ROS. Plenty of our clients hand that bit over entirely; our VAT return service exists for exactly this reason.
Why might Revenue query or reject my VAT registration application?
Revenue screens applications for fraud, so a chunk of them attract questions. The usual triggers are avoidable:
- A business activity description that’s too vague to assess.
- Mismatches between the address, bank account, identity and company details supplied.
- No evidence of trading or a genuine intention to trade.
- Requesting intra-EU registration when nothing in the application suggests EU trade.
- Incomplete fields, or figures that don’t add up.
If Revenue writes back, answer promptly and attach the supporting documents they ask for. A queried application isn’t a rejected one; slow or evasive replies are what kill it.
FAQ: VAT registration in Ireland
How much does it cost to get a VAT number in Ireland?
Nothing. Revenue does not charge a fee to register for VAT in Ireland. The only cost is your time, or an accountant’s fee if you’d rather someone handles the registration form and the Revenue queries for you.
Does a sole trader need to register for VAT?
Only when turnover from taxable supplies exceeds the threshold, the same rule as for companies. Sole traders below €42,500 (services) or €85,000 (goods) can stay outside the VAT net or register voluntarily if reclaiming input VAT makes sense, as Citizens Information explains.
Can I reclaim VAT on costs I paid before registering?
Generally no. VAT incurred before your registration date is usually not recoverable in Ireland, which is why timing matters. If you’re about to spend heavily on set-up costs, register first where you can, and take professional advice before committing to large purchases.
Do I need a VAT number to trade with EU customers or suppliers?
For B2B trade, effectively yes. EU suppliers will look you up on VIES before zero-rating sales to you, and EU business customers expect a valid Irish VAT number on your invoices. Make sure you apply for intra-EU registration, not domestic-only.
Can I cancel my VAT registration later if my turnover drops?
Yes, you can apply to cancel a VAT registration through Revenue if you fall below the threshold or stop trading. Expect a final VAT return and, in some cases, a clawback of VAT previously reclaimed, so check the numbers before deregistering.
Want help getting VAT registered without the back and forth?
We register businesses for VAT every week: choosing mandatory or voluntary status, picking the right basis of accounting, getting the EU trade answers right first time, and dealing with Revenue’s follow-up questions. Fill in our VAT registration form and we’ll take it from there, or book a consultation if you want to talk it through first. Get in touch today.
Disclaimer: This guide is for general information purposes only and does not constitute professional advice. Speak to a qualified accountant about your specific circumstances before acting on anything covered here.