Do You Need to Register for VAT in Ireland?

Yes, once your turnover crosses one of these thresholds on a rolling 12-month basis:

• €85,000 — if you supply goods
• €42,500 — if you supply services, or a mix of goods and services where goods make up less than 90% of turnover
• €10,000 — if you make distance sales, mail-order sales, or sell cross-border digital services (telecoms, broadcasting, electronic services) to consumers in other EU states

There's also a narrower €42,500 threshold for goods you manufacture or produce from zero-rated materials (rather than the standard €85,000 goods threshold), and a separate €41,000 threshold if you're acquiring goods from other EU member states. Most businesses will only ever need the first three.

The two main thresholds, explained

Goods — €85,000. This is the threshold for businesses whose supplies are mainly or wholly goods: retailers, wholesalers, manufacturers.

Services — €42,500. This covers services-only businesses, and it's also the default for mixed goods-and-services businesses. If you supply both, Revenue applies the €85,000 goods threshold only where 90% or more of your turnover comes from goods. Fall short of that 90% split, and you're assessed against the lower €42,500 services threshold on your full turnover, not just the services portion.

The zero-rated materials exception. There's a specific, narrower rule for goods manufactured or produced from zero-rated materials, liable at the standard or reduced rate: that case sits at €42,500, not €85,000. It's a distinct rule from the 90% goods test above, not the same one worded differently. If this applies to you, it's worth confirming with your accountant rather than assuming the general goods threshold applies.

It's a rolling 12-month test, not a calendar year

Revenue doesn't wait for your financial year-end. It looks at any continuous 12-month period. If your turnover crosses the threshold partway through your year, or you can reasonably foresee that it will in the next 12 months, the obligation to register kicks in then, not at your next year-end review.

The distance sales / digital services threshold

If you sell goods by mail order or distance sale, or supply cross-border telecoms, broadcasting, or electronic services to consumers in other EU states, there's a separate €10,000 threshold. It's assessed on your total EU-wide sales of this kind, not just sales into any one country, and it only applies if you're established in a single EU member state.

Can you register before you hit the threshold?

Yes. Voluntary registration is available below the thresholds and is often worthwhile for B2B businesses with meaningful input VAT to reclaim (software, professional subscriptions, equipment). It's a genuine choice worth weighing with your accountant, not just a compliance trigger.

What to do if you're close

If you're approaching any of these thresholds, don't wait for your annual accounts to confirm it. Track turnover on a rolling basis, and speak to an accountant before you cross, not after. Late registration can mean Revenue backdating your liability to the date you should have registered, whether or not you charged VAT to customers in the meantime.

Figures current as of 2026. Always confirm the latest thresholds at revenue.ie before publishing or acting on them, as thresholds have changed in recent budgets.