Irish VAT thresholds for services and goods

VAT registration is one of the first “real company” moments for Irish sole traders and new LTD directors. The rules are not mysterious — but the wrong threshold, or a late registration, creates avoidable Interest and admin. This note focuses on the decision you actually face: am I over the line, and what changes the day I register?

Always confirm live figures on revenue.ie. Thresholds and rates move with Finance Acts. What follows is an operating guide, not a substitute for ROS or a tax adviser.

Two thresholds — don’t mix them up

Ireland uses different registration thresholds depending on what you mainly sell. Mixing “services” and “goods” is the most common error we see when founders guess from memory or from a UK blog post.

• Services only: registration is generally required when taxable turnover exceeds €42,500 in any continuous 12‑month period.
• Goods (or mostly goods): a higher €75,000 threshold typically applies when 90% or more of turnover is from goods.
• Intra‑EU and distance‑selling rules can create separate registration triggers — treat cross‑border sales as their own checklist.

If your mix of goods and services is messy (software + hardware, agency + product), get clarity early. The “90% goods” test is not a vibe; it is a composition of taxable turnover.

Watch rolling 12 months, not the calendar year alone

The dangerous pattern is a strong Q4 that pushes you over the line in February — then discovering the obligation mid‑spring. Build a simple habit: once a month, total taxable turnover for the last 12 months. If you are within ~15% of the threshold, increase the check to fortnightly and plan registration before you cross.

Elective registration

You can register below the threshold. That is useful when customers are VAT‑registered and you want to reclaim input VAT on tools, contractors, and equipment. It also adds return filing, invoice rules, and cash‑flow timing. Elective registration is a strategy choice, not a badge of seriousness.

What changes after you register

• You charge VAT on taxable supplies at the correct rate for each line.
• You file returns on the frequency Revenue assigns (often bi‑monthly for many small traders).
• Sales invoices must carry the required VAT particulars.
• You keep records that support what you declared — not a folder of PDFs you never open.

Missed VAT returns are rarely about not knowing the law. They are about not seeing the date until it is due. Pair registration with a calendar that already holds CT, PAYE, and CRO — one place, not four mental lists.

A practical checklist for the next 30 days

• Export sales for the last 12 months and flag taxable vs exempt/out‑of‑scope.
• Decide goods vs services composition with your bookkeeper if the mix is unclear.
• If near the line, diary a registration decision date before you cross.
• If registering, draft your first return window into the company calendar the same day.

Taxee.pro is built for Irish LTDs and sole traders who want those VAT windows beside the rest of the compliance calendar — with optional Telegram reminders when you would rather not open another dashboard on return week.