Ireland VAT Registration 2026: The €85,000 & €42,500 Thresholds Explained

TL;DR: In Ireland, you must register for VAT when your taxable turnover exceeds €85,000 (goods) or €42,500 (services) in any 12-month period. These thresholds apply from 1 January 2025 under the Finance Act 2024. Voluntary registration is permitted below these limits, and some supplies require immediate mandatory registration regardless of turnover.

Last updated: July 2026

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What Are the Ireland VAT Registration Thresholds in 2026?

The two core Irish VAT registration thresholds — €85,000 for taxable goods and €42,500 for taxable services — were increased by the Finance Act 2024 and took effect on 1 January 2025. These thresholds apply to your total taxable turnover over any continuous 12-month period, not just a calendar year.

Revenue Ireland administers VAT under the Value-Added Tax Consolidation Act 2010 (VATCA 2010), as amended. The thresholds are not automatic; once you reasonably expect to exceed them within the next 30 days, or once you have exceeded them in the preceding 12 months, you are legally required to register.

Key VAT Registration Thresholds (2025–2026)

Threshold Type	Amount	Basis
Taxable goods (including mixed supply where goods predominate)	€85,000	Any 12-month period
Taxable services (including mixed supply where services predominate)	€42,500	Any 12-month period
Intra-Community acquisitions (ICA)	€41,000	Calendar year
Distance sales into Ireland (non-established sellers, EU OSS threshold)	€10,000	EU-wide (OSS applies)
Mandatory registration — no threshold	€0	Certain supplies (see below)

Note on the ICA threshold: The €41,000 intra-Community acquisitions threshold is stated in Revenue's published guidance. Businesses acquiring goods from other EU member states above this level must register for VAT in Ireland. Confirm the current figure directly with Revenue.ie or a qualified tax adviser before relying on it, as Revenue guidance is updated periodically.

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Who Must Register for VAT in Ireland Immediately (No Threshold)?

Some businesses must register for VAT in Ireland regardless of turnover. Mandatory immediate registration applies to any business that makes these supplies, even if turnover is zero.

Certain business activities trigger mandatory VAT registration with no threshold at all. Revenue's rules under the VATCA 2010 require immediate registration for:

• Non-established traders supplying taxable goods or services in Ireland
• Businesses receiving services from abroad subject to the Reverse Charge Mechanism (RCM) that exceed the relevant threshold
• Businesses making intra-Community supplies of goods
• Businesses making distance sales into Ireland above the EU-wide €10,000 OSS threshold (unless registered under the One Stop Shop scheme in another member state)
• Businesses supplying new means of transport to other EU member states
• Flat-rate farmers who opt to register voluntarily

If any of these situations apply to you, engage a tax adviser immediately — waiting until you hit a turnover threshold is not an option.

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What Are the Current VAT Rates in Ireland for 2026?

Ireland operates four VAT rates, applied to different categories of goods and services. The standard rate of 23% applies to most goods and services not specifically listed at a lower rate. Applying the wrong rate is a compliance error that can result in Revenue audits and interest charges.

Irish VAT Rates Table (2026)

VAT Rate	Category	Examples of Goods/Services
23% (Standard)	Most goods and services	Electronics, clothing, professional fees, software
13.5% (Reduced)	Immovable goods, fuel, hospitality, tourism	Construction services, electricity, hotel accommodation, restaurant meals, café meals, cinema admissions, hairdressing
9% (Second Reduced)	Certain newspapers and sporting facilities	Print newspapers, electronic newspapers, admission to sporting facilities
0% (Zero-rated)	Food, books, children's clothing, exports	Unprocessed food, oral medicines, books, exports outside the EU
Exempt	Certain financial, medical, and educational services	Banking, insurance, hospital services, certain education

Important — Hospitality rate correction: The temporary 9% VAT rate for hotels, restaurants, and café meals that applied during COVID-19 relief was not extended past 31 August 2023. From 1 September 2023, hospitality and tourism services (hotel accommodation, restaurant meals, café meals, cinema admissions) returned to the 13.5% reduced rate. As of 2026, 13.5% is the correct rate for these services. Using 9% for hospitality is a compliance error.

The 9% rate currently applies to printed and electronic newspapers and admission to sporting facilities — not to hotels or restaurants.

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How to Register for VAT in Ireland: Step-by-Step

VAT registration in Ireland is handled online through Revenue's myAccount (for sole traders and individuals) or Revenue Online Service (ROS) (for companies and agents). Registration is straightforward but requires accurate information about your business structure and expected taxable supplies.

Step 1 — Determine your obligation: Establish whether you have exceeded or will imminently exceed the €85,000 or €42,500 threshold, or whether a mandatory registration trigger applies.

Step 2 — Gather required information:

• Tax Reference Number (TRN) or PPS number
• Business name, address, and legal structure
• Nature of business and expected annual turnover
• Bank account details for refunds
• Details of any EU suppliers or customers

Step 3 — Register via ROS or myAccount: Complete the TR1 form (sole traders, partnerships, trusts) or TR2 form (companies) online through Revenue's portal. Paper versions exist but online registration is faster.

Step 4 — Receive your VAT registration number: Revenue typically issues a VAT number within 5 working days for straightforward applications, though complex cases may take longer.

Step 5 — Begin charging VAT: From your effective registration date, you must charge VAT on all taxable supplies at the correct rate and issue VAT-compliant invoices.

Step 6 — File VAT returns: Most businesses file bi-monthly (every two months). Revenue assigns your filing frequency based on your expected liability. The filing deadline is the 19th of the month following the end of each taxable period (23rd for ROS filers paying by direct debit).

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VAT on Cross-Border Services: B2B vs B2C Rules

The VAT treatment of cross-border services depends on whether your customer is a VAT-registered business (B2B) or a private consumer (B2C). Getting this wrong is one of the most common compliance errors for Irish service businesses.

B2B services (General Rule — Place of Supply): When you supply services to a VAT-registered business in another EU member state, the place of supply is generally the customer's country under the General Rule (VATCA 2010 implementing the EU VAT Directive). This means the supply is outside the scope of Irish VAT — it is not subject to Irish VAT at all. You do not charge Irish VAT, and you do not apply a zero rate. The customer accounts for VAT in their own country under their reverse charge rules.

Critical distinction: Outside-the-scope supplies and zero-rated supplies are legally different. Zero-rated supplies are taxable at 0% and are reported differently on your VAT return. Outside-the-scope supplies are not taxable in Ireland at all. Confusing these two treatments affects how you complete your VAT return and your input credit entitlement — always confirm treatment with a qualified Irish tax adviser.

B2C services: When you supply services to private consumers (non-VAT-registered), the place of supply is generally Ireland (where you, the supplier, are established), and Irish VAT applies at the relevant rate.

Exceptions exist for specific service categories (telecommunications, broadcasting, electronically supplied services, and certain others) where different place-of-supply rules apply. The EU OSS (One Stop Shop) scheme allows businesses to account for VAT on B2C digital services across the EU through a single return.

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Voluntary VAT Registration: When Does It Make Sense?

You can voluntarily register for VAT in Ireland even if your turnover is below the relevant threshold. Voluntary registration is often beneficial for B2B businesses that want to reclaim VAT on their purchases.

Situations where voluntary registration is advantageous:

• Your customers are predominantly VAT-registered businesses who can reclaim VAT — so charging VAT does not disadvantage you competitively
• You have significant VAT-inclusive costs (equipment, premises, professional services) and want to reclaim input VAT
• You are a startup with high initial capital expenditure before revenue begins
• You supply to customers outside Ireland and want to reclaim input VAT on Irish costs

Situations where voluntary registration may not be beneficial:

• Your customers are primarily private consumers (B2C) who cannot reclaim VAT — adding VAT increases their price
• Your margins are tight and the administrative burden outweighs the input VAT recovery
• Your purchases are largely VAT-exempt or outside the scope of VAT

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How KARR Helps Irish Businesses Manage VAT Compliance

KARR is cloud accounting software built for business owners who are not accountants. For Irish businesses, KARR handles VAT-specific workflows including: correct VAT rate assignment per transaction category, VAT return preparation aligned with Revenue's bi-monthly filing periods, reverse charge accounting for intra-Community acquisitions, and multi-currency invoicing for cross-border clients.

KARR's "What Happened?" guided wizard lets a non-accountant record a transaction in plain language — the software maps it to the correct VAT treatment automatically, reducing the risk of applying the wrong rate (such as 9% instead of 13.5% for hospitality). KARR's AI receipt OCR scans supplier invoices and extracts VAT amounts, posting them to the correct input tax account without manual entry.

For Irish accountants managing multiple clients, KARR's practice dashboard provides multi-client VAT return oversight, batch operations, and deadline tracking across all clients in one view.

KARR pricing: Free plan ($0), Pro ($12/month), Business ($29/month) — available at karr.pro.

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Penalties for Late VAT Registration and Non-Compliance in Ireland

Revenue imposes surcharges and interest on businesses that fail to register on time or file and pay VAT correctly. The key penalty provisions under Irish tax law include:

• Late filing surcharge: 5% of the VAT liability if filed within 2 months of the due date; 10% if filed more than 2 months late (subject to a maximum cap — confirm current cap with Revenue)
• Interest on late payment: Simple interest accrues daily on unpaid VAT at the rate published by Revenue under the Taxes Consolidation Act 1997 — confirm the current daily rate at Revenue.ie
• Failure to register: Revenue can raise an assessment for VAT that should have been charged from the date you were obliged to register, plus interest and surcharges
• Incorrect VAT rate: Applying a lower rate than required (e.g., 9% instead of 13.5% for restaurant meals) results in an underpayment that Revenue can assess, with interest from the original due date

Early self-correction through Revenue's Qualifying Disclosure process can significantly reduce or eliminate penalties where errors are identified and disclosed before a Revenue audit commences.

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FAQ: Ireland VAT Registration