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

Categories

Business & VAT

What are the VAT registration thresholds in Ireland?

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

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