The Republic of Ireland introduced Value Added Tax in 1972, in preparation for it joining the European Union the following year. The Irish VAT regime follows the rest of Europe, and is largely based on the EU’s VAT Directives (laws). These govern the rules for Irish VAT registrations, compliance, returns, Intrastat, EC Sales declarations and other related issues.
Any foreign company providing taxable supplies in Ireland may be required to account for Irish VAT. This would require them to register their foreign company for a local VAT number, and then record and report any transactions. This can include importation. The number of instances that require registration of non-resident traders is reducing (see below).
Irish VAT is set down in the Irish VAT Act of 1972, which has been amended on a number of occasions since. The Irish tax authority, Revenue Commission administers the VAT regime. This includes issuing regular briefings on the day-to-day rules of Irish VAT compliance.
Alongside all other EU member states, Ireland may require foreign companies to register for local VAT in certain trading situations. These include:
Since the 2010 VAT Package, whereby the VAT place of supply for Irish services was changed, the number of occasions requiring VAT registration for services has all but disappeared.
You can read more about Irish VAT on our Irish VAT compliance, VAT registration or other related briefings.