VAT Registration in Ireland (2026): Thresholds, Timing and How to Register

VAT confuses more new business owners than almost any other tax, mostly because of one myth: that you register for VAT when you “set up.”

You don’t.

VAT is driven by your turnover, not by whether you’re a sole trader or a company.

Here’s what actually triggers it and how to handle it.

The 2026 VAT thresholds

You are obliged to register for VAT once your annual turnover crosses one of these limits:

• €85,000 if you mainly supply goods.
• €42,500 if you mainly supply services.

Revenue’s current guidance calculates turnover for threshold purposes over a calendar year, so monitor your annual turnover and check the live rules as your business grows.

You can confirm the current figures directly on Revenue’s VAT thresholds page.

A note for 2026: an increase to €100,000 for goods and €50,000 for services has been discussed but is not yet in force at the time of writing — always check the live figure before deciding.

The trap for businesses that sell both goods and services

If you sell a mix, you only get the higher €85,000 goods threshold if at least 90% of your turnover comes from goods.

Fall below that, and the lower €42,500 services threshold applies to everything you sell.

This quietly catches product businesses that also do installation, consulting or support — the service element drags them onto the lower threshold sooner than they expect.

Should you register voluntarily — before you have to?

Sometimes, yes.

If most of your customers are themselves VAT-registered businesses, B2B, voluntary registration lets you reclaim the VAT on your own costs — software, equipment and professional fees — which can be worth real money in your early months.

It also makes you look established.

The downside: if you sell to the public, B2C, adding VAT can make you look 23% more expensive overnight, so it’s a judgement call.

The distance-selling and non-resident rules

Two extra points catch people out.

If you sell to consumers in other EU countries, there’s a separate €10,000 EU-wide threshold, above which you charge VAT in the customer’s country — usually handled through the One Stop Shop (OSS).

Non-resident businesses selling into Ireland generally have no threshold at all — VAT can apply from the first sale.

If that’s you, it’s worth reading about non-resident formation too.

How to register

Registration is done through Revenue’s Online Service (ROS).

A sole trader or partnership uses form TR1, while a company uses TR2.

You’ll describe your activity and expected turnover, and Revenue issues your VAT number.

It’s not difficult, but errors or vague activity descriptions cause delays — which is why we handle it for clients as part of VAT and tax registration.

One current change worth knowing

VAT rates matter too.

Ireland’s standard rate is 23%, with reduced rates of 13.5% and 9%.

Notably, the rate for restaurant, catering and hairdressing services is set to drop to 9% from July 2026 — a meaningful change if you’re in hospitality.

Not sure whether you need to register yet?

Watching your annual turnover against Revenue’s live thresholds is the whole game.

If you’re getting close, talk to us before you cross the line, not after — Revenue can pursue VAT you should have charged even if you never collected it.