VAT Registration in Ireland: Lessons from recent cases

Because of the fear of VAT carousal fraud within the EU all applications for Irish VAT numbers are scrutinised closely by Irish Revenue; indeed in recent times the VAT application form has become more complex with 4 pages of dedicated VAT related questions to be answered. If the answers are deficient Irish Revenue will refuse to provide a VAT number until adequate responses are supplied. Even if the answers are adequate it is understood that registration in approximately 60% of cases is subject to a site visit by Irish Revenue officials to ensure that the taxpayer has a physical presence in Ireland. Again if the Irish Revenue is not satisfied with the taxpayer’s Irish presence (for example, if it amounts to no more than a “brass plate” operation or the business address is the address of the taxpayer’s professional adviser) the registration process is paused/refused.

Recent decisions by the Irish Tax Appeals Commission (TAC) (the Irish equivalent of the UK’s First-Tier Tribunal Tax Tribunal) highlight the challenges faced by businesses seeking VAT registration in Ireland. Two 2025 decisions, in particular, underscore the importance of providing robust evidence of economic activity and taxable supplies within Ireland to qualify as an "accountable person" under the Value Added Tax Consolidation Act 2010 (VATCA 2010).

Determination 191TACD2025: Multinational Company with Limited Evidence of Trade

A multinational company applied for VAT registration (it was in fact its fifth application), claiming significant revenue (in excess of VAT registration thresholds) and plans for expansion in Ireland. However, the Irish Revenue refused the application, citing insufficient evidence of trade or capacity to trade in Ireland. The TAC upheld the decision, noting that the company failed to provide substantive documentation, such as contracts or proof of ongoing business activities, to demonstrate it was an "accountable person."

Determination 164TACD2025: Company with Minimal Presence in Ireland

In another case, a company with a non-resident director and a registered business address at its tax agent’s office sought VAT registration. The company submitted evidence, including a consulting agreement, bank statements, and a rental agreement for desk space. However, the TAC found the evidence insufficient to establish taxable economic activity in Ireland. The company’s part-time employee, who was also employed by the tax agent’s firm, and the lack of a physical or technical presence in Ireland further weakened its case.

Key Takeaways

These cases highlight the stringent requirements for VAT registration in Ireland. The TAC emphasised that businesses must provide clear, objective evidence of economic activity and taxable supplies within Ireland. Simply being incorporated in Ireland or having a registered address is not enough to qualify as an "accountable person."

Recommendations for Taxpayers Seeking Irish VAT Registration

To improve the likelihood of a successful VAT registration application, taxpayers should consider the following:

• Demonstrate Economic Activity: Provide evidence of actual or planned taxable supplies in Ireland, such as contracts, invoices, and trade receipts. Regular and ongoing transactions are critical to establishing economic activity.
• Establish a Physical Presence: A mere registered address or rented desk space is unlikely to suffice. Businesses should consider having a dedicated office or other physical infrastructure in Ireland to support their operations.
• Employ Local Staff: Hiring employees based in Ireland can strengthen the case for VAT registration. Ensure employment contracts, payroll records, and PAYE returns are available as evidence.
• Maintain Comprehensive Documentation: Submit detailed records, including agreements with clients or sub-contractors, bank statements showing payments for services, and evidence of intra-community trade, if applicable.
• Engage Professional Advice: Work with tax advisors to ensure compliance with VATCA 2010 and to prepare a robust application that addresses the Irish Revenue’s requirements.

Conclusion

The TAC decisions serve as a reminder that VAT registration in Ireland is not automatic and requires businesses to meet strict criteria. By proactively addressing the requirements and providing clear evidence of economic activity, taxpayers can improve their chances of securing VAT registration and avoid unnecessary delays or refusals.