EU VAT Registration in Ireland

Who needs to register for an EU VAT number?

If you are selling goods or products to consumers in the EU (B2C) and the consignment value is €150 or less, you should register for an EU VAT number.

If you do not have a company in the EU, you can choose to register for an EU VAT number. This also applies to UK companies.

Where you do not have an EU VAT number, the customer will be liable to pay the VAT on the order before customs release the item(s). This will most likely result in delayed deliveries and unhappy customers.

We are experienced in helping non-EU companies register for EU VAT in Ireland, We provide a full-service EU VAT solution to many non-EU clients.

Need help getting an EU VAT number? Get in touch with us.

What is a European VAT Number?

A European VAT number, also known as a VAT identification number, is a unique identifier assigned to businesses registered for Value Added Tax (VAT) within the European Union. Each EU member state issues its national VAT numbers following specific country formats. (source: European Commission)

The VAT number always begins with a two-letter country code (such as IE for Ireland, DE for Germany, or FR for France) followed by a series of digits or characters that vary by country. For example:

Ireland: IE1234567X or IE1X23456X (8 or 9 characters)
Germany: DE123456789 (9 digits)
Italy: IT12345678901 (11 digits)
Hungary: HU12345678 (8 digits)

This number is essential for businesses as it:

Identifies the tax status of a business
Helps determine the place of taxation
Must be mentioned on invoices
Facilitates intra-EU transactions through the reverse-charge mechanism
It is used for filing VAT returns and reclaiming VAT (source: European Commission)

What is the process for companies based outside the EU?

When the value of a consignment is less than €150, this comes under EU VAT.

It does not matter whether or not the company is part of the EU.

Let's look at the following example:

Ralph from Germany orders a laptop case for €40 from a company based in the UK
The UK Co charges Erik (€40 + 19%) because the VAT rate in Germany is 19%. This makes the total invoice amount €47.60
The product is shipped by the UK Co and it is delivered to Ralph within two days. Because the consignment value is less than €150, there is no customs duty.
UK Co is registered for EU VAT in Ireland. At the end of the month, the UK Co files its EU VAT report and pays the VAT owed to the Irish tax authorities (Revenue).
Revenue then pays the VAT over to the German tax authorities

Please note that all non-EU businesses must appoint an intermediary to avail of this process.

Once your company is registered for IOSS in Ireland. Here is how it works

Do I need an EU company to register for VAT?

No, you are not required to have an EU company to register for EU VAT in Ireland. We are currently working with a number of non-EU companies from the UK, US, India, and China, helping them to register for EU VAT in Ireland and manage their monthly VAT returns.

How long does it take to register for EU VAT in Ireland?

It usually takes approx. 4 weeks. However, it can take longer. We recommend that companies make previsions for delays.

Are VAT sales exempt from customs duty?

Sales where the consignment value is less than €150 are subject to EU VAT, but are not subject to Customs Duty. This is part of the import-one-stop-shop IOSS regime. For sales above €150 the normal EU VAT requirements apply.

Do UK companies need to register for EU VAT?

Due to Brexit, UK companies are no longer part of the EU. As a result, the UK is no longer in the EU VAT area for goods. UK companies that are supplying goods to consumers in the EU are required to register for EU VAT in an EU member state.

The UK is now seen as a 3rd country, similar to the US, China, or India.

UK companies need to appoint a Tax Intermediary/Fiscal Representative when registering for EU VAT. Nathan Trust can provide this service.

Do you need a VAT intermediary/Fiscal Representative in Ireland?

Companies will need to appoint an intermediary where they are not established in the EU. Unless that company is located in a country where the EU has concluded a VAT mutual assistance agreement, you will need to appoint an intermediary to be able to use the EU VAT service.

To date, the EU has VAT mutual assistance agreements with the following countries:

Norway

If your country is listed above, you do not need to appoint a tax intermediary in Ireland. This list is being updated regularly.

Nathan Trust can act as your Fiscal Representative in Ireland.

Are you entitled to reclaim any EU VAT expenses?

Companies registered under EU VAT are not entitled to deduct any VAT expense incurred in any EU country. The EU VAT service is not designed to reclaim VAT. Its purpose is to facilitate the payment of VAT.

What records should I keep?

Companies are required to retain detailed records of all transactions. This information must be kept for 10 years:

the Member State to which the services are supplied
the type of services provided
the date of the supply of the services provided
the taxable amount indicating the currency used
any subsequent increase or reduction of the taxable amount
the VAT rate applied
the amount of VAT payable indicating the currency used
the date and amount of payments received
any payments on account that were received before the supply of the services provided
where an invoice is issued, the information contained on the invoice
with regards to services, the information provided to establish the place where the customer is based or has their permanent address or usually resides.