We get calls every day from clients who want to register for VAT in Ireland prior to a company formation but have not yet considered when they need to register. In many cases a company does not need to register for VAT immediately. The threshold is dependent on your turnover in any continuous 12 month period. Traders and companies whos turnover is below VAT thresholds do not need to register immediately.
VAT is a very complex area and it is recommended that advice is taken prior to registration. A person, while not established in the state, needs to register for VAT in Ireland and account for VAT if that person supplies, taxable goods to ‘taxable customers’ in the State or services to ‘taxable customers’ in the State. This applies irrespective of the level of turnover.
It is important to keep all records of expenses for setting up your business as you may be able to reclaim VAT on these expenses once you are registered. The first stage is to get your company incorporated. It is very important to make this application correctly as the incorporation papers may influence the VAT application process. Listing your Administration address and your registered office address is important. Irish Formations can provide these two addresses for your company and consult with you regarding VAT registration.
While registering for VAT revenue in Ireland, they may request supporting documentation for your application. If the initial application is rejected, then it does not mean you will never qualify, you may just need to resubmit with supporting documentation. Revenue may write to you listing what is required. We can assist here if required. If you receive one of these letters then you can send it to us and a consultation can be organized to asses your situation.
Advice should always be taken from a certified Tax advisor on the VAT rates an your compliance. If you want to be put in contact with a certified tax advisor then contact us for further information.