Question 1

What are the VAT registration thresholds in Ireland?

Accepted Answer

Ireland's VAT registration thresholds are among the highest in the EU. For 2024, the threshold is €37,500 for businesses supplying services only, and €75,000 for businesses supplying goods. Businesses whose turnover is below these thresholds do not need to register for VAT, though they can register voluntarily.

The standard VAT rate in Ireland is 23%. A reduced rate of 13.5% applies to fuel, construction services, and certain other goods. A 9% rate applies to newspapers, electronic publications

Question 2

Should an Irish contractor use a limited company or umbrella company — how do the taxes compare?

Accepted Answer

Irish contractors typically operate either through their own limited company or through an umbrella company. The choice affects tax efficiency, administrative burden, and flexibility.

Operating through a limited company (often a singleperson or personal service company) allows the director to split income between salary and dividends. Salary is subject to PAYE, PRSI, and USC; dividends are subject to income tax and USC but not PRSI. Retaining profits in the company defers personal tax. Corporat

Question 3

How does the Irish R&D tax credit work — is it 25%?

Accepted Answer

Ireland's R&D tax credit allows companies to claim a 25% tax credit on qualifying research and development expenditure, on top of the standard 12.5% deduction for the cost as a business expense. This means the effective benefit can reach 37.5 cents per euro of qualifying R&D spend.

To qualify, the expenditure must be on systematic, investigative, or experimental activities in a field of science or technology aimed at advancing knowledge or resolving scientific or technological uncertainty. The

Question 4

How does a sole trader register and file taxes in Ireland?

Accepted Answer

A sole trader in Ireland is the simplest business structure — you trade as yourself, with no legal separation between you and the business. Here is the full registration and filing process.

Registering as a sole trader:

1. Register with Revenue for Income Tax via Revenue's myAccount or by completing Form TR1. You must do this within 30 days of commencing trade.
2. Register a business name with the Companies Registration Office (CRO) if you are trading under a name other than your own (e.g., 'D

Question 5

What is the SURE scheme in Ireland — how do you get a tax refund for starting a company?

Accepted Answer

SURE (Start Up Relief for Entrepreneurs) is an Irish tax incentive that allows individuals who leave PAYE employment to start their own company to claim back income tax paid in previous years. It is one of the most underused reliefs available to new entrepreneurs.

How SURE works:

If you leave employment and invest your own money in shares of a new qualifying company you set up, you can claim income tax relief at up to 41% on the amount invested. The relief is given against income tax you paid

Question 6

What is the EIIS (Employment Investment Incentive Scheme) in Ireland?

Accepted Answer

The Employment Investment Incentive Scheme (EIIS) is an Irish tax relief designed to encourage individual investors to invest in small and mediumsized Irish companies. It is Ireland's equivalent of the UK's EIS (Enterprise Investment Scheme).

How EIIS works:

An individual who subscribes for eligible shares in a qualifying company can claim income tax relief at 35% on the amount invested. This means a €20,000 investment generates a €7,000 income tax deduction (saving €7,000 if you pay tax at th

Question 7

How does VAT on property work in Ireland — residential vs commercial?

Accepted Answer

VAT on property in Ireland depends on whether the property is residential or commercial and whether it is new or secondhand. The rules are complex and differ from most other VAT transactions.

Residential property:

New residential property (first sale by a developer) is subject to VAT at 13.5% on the sale price. The developer charges and accounts for the VAT, and it is included in the purchase price you see quoted.
 Secondhand residential property (subsequent resales by private owners or nonta

Question 8

What is preliminary tax in Ireland and when do you pay it?

Accepted Answer

Preliminary tax is an advance payment of your income tax, USC, and PRSI liability for the current tax year, paid alongside the filing of the previous year's return. It is a feature of Ireland's selfassessment system and applies to all selfassessed taxpayers.

When is preliminary tax due?

Preliminary tax for the current year is due by 31 October of that same year. For ROS (Revenue Online Service) filers who pay online, the deadline is typically extended to midNovember (usually around 14 November

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Business & VAT Tax Questions & Answers