New Two-Tier VAT Registration System

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Revenue has developed a two-tier VAT registration system whereby you can apply for a ‘domestic-only’ registration or an ‘intra-EU’ registration. This change will apply only to persons applying for VAT registration after 17 June 2019.

‘Domestic only’ registration applies to goods and services supplied and received in the State. An intra-EU registration will facilitate intra-community acquisitions from, and reporting of intra-community supplies to, all EU Member States including Ireland.

Taxpayers not undertaking any intra-EU trade should apply for ‘domestic-only’ status. Taxpayers intending to trade with businesses elsewhere in the EU should apply for ‘Intra-EU’ status, which will enable them to make zero-rated intra-Community acquisitions.

A simplified registration process will be available for domestic-only applicants (businesses not undertaking any intra-EU trade). If you register for domestic-only purposes and subsequently wish to engage in intra-EU trade, you may then submit an application for an intra-EU registration.

Revenue is currently updating internal systems to facilitate the new registration process. You will see new Revenue Online Service (ROS) screens after 15 June 2019. Revenue advise that full functionality, including the accelerated response for domestic-only applications, should be available from mid-September 2019.

Please note the following:

• All existing VAT registered customers are deemed to be intra-EU VAT registered. These customers do not need to contact Revenue regarding their registration.
• Where an application for intra-EU registration is approved by Revenue, the registration also covers domestic activity. In the case of intra-EU suppliers, the taxpayer will be automatically registered for VIES reporting obligations.
• From September 2019, it is anticipated that most of the ‘domestic-only’ applications will be approved without delay. Appraisals may be carried out on certain applications.
• Pre-registration checking, similar to checking currently carried out, will be performed on all cases seeking an intra-EU registration.

If you would like to discuss this topic further, please contact OSK Advisers on 01-439 4200 or email advice@osk.ie

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