{"id":48,"date":"2018-06-12T08:43:33","date_gmt":"2018-06-12T07:43:33","guid":{"rendered":"https:\/\/www.sage.com\/en-ie\/blog\/?p=48"},"modified":"2026-01-09T15:19:53","modified_gmt":"2026-01-09T15:19:53","slug":"understanding-if-you-need-to-register-for-vat-and-how-to-do-it","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-ie\/blog\/understanding-if-you-need-to-register-for-vat-and-how-to-do-it\/","title":{"rendered":"Understanding if you need to register for VAT and how to do it"},"content":{"rendered":"
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\n\t\t\t\t\t\t\tStrategy, Legal & Operations<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t
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\n\t\t\t\t\t\tUnderstanding if you need to register for VAT and how to do it\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t

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\n\t\t\t\n\t\t\t\t\"Keir\t\t\t\tKeir Thomas-Bryant<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n\n\n

“Do I need to register for VAT?\u201d – it’s a question that’s asked by sole traders and people running their businesses time and again. But what’s the answer? In this article, we help you to answer the question.<\/p>\n\n\n\n

Turnover (sales) thresholds have been set by the Revenue Commissioners to determine if you do need to register.<\/p>\n\n\n\n

If you operate a services business (such as hairdressing) and your turnover is above \u20ac37,500 then you do need to register. If you operate a business where you supply goods (such as a publican), once turnover is above \u20ac75,000 you also need to register.<\/p>\n\n\n\n

For those setting up in business for the first time, while all clients hope their turnover exceeds these thresholds for obvious reasons, it may take a year or two to become established and do so.<\/p>\n\n\n\n

You can therefore elect not to register for VAT<\/a> until you feel 12 months of turnover will be at the levels defined above. Once you reach that level you must register with Revenue.<\/p>\n\n\n\n

Registration is simple enough and is done through the ROS (Revenue Online Services) system<\/a>.<\/p>\n\n\n\n

Filing VAT returns<\/strong><\/h2>\n\n\n\n

VAT3 returns can be filed every two, three, four, six or 12 months, and are due on the 19th<\/sup> of the month following the last day of the VAT period end due.<\/p>\n\n\n\n

So if you register for VAT on 1 September, and operate returns on a bi-monthly process (every two months), your first VAT3 will be for September\/October, and will be due on 19 November.<\/p>\n\n\n\n

The returns basis for VAT is an important option when registering for the first time.<\/p>\n\n\n\n

Cash received basis vs invoice basis<\/strong><\/h2>\n\n\n\n

You can either elect to choose the cash received basis or invoice basis to account for VAT.<\/p>\n\n\n\n

Cash basis<\/strong><\/h3>\n\n\n\n

This means you will file your VAT returns<\/a> based on VAT monies received (for turnover) and paid (for purchases and expenses) in the taxable period.<\/p>\n\n\n\n

Receipts would equate to customers paying you for goods and services and payments would be monies paid to suppliers etc.<\/p>\n\n\n\n

Invoice basis<\/strong><\/h3>\n\n\n\n

The invoice basis means you file your VAT returns based on what date VAT appears on your sales invoices and purchases invoices for the period. The downside to this option, in my opinion, is cash flow.<\/p>\n\n\n\n

If, for example you invoice a customer on 31 October, and you give that customer 30 days’ credit, you still have to hand over the VAT to Revenue on 19 November, even though you may not get your invoice until 30 November at the earliest.<\/p>\n\n\n\n

Read more about VAT<\/strong><\/p>\n\n\n\n