There's good news and there are important learnings from a recent decision Tax Appeals Commission case.

VAT registrations in Ireland have always been difficult. Often, they seem like a circular process. Businesses are asked to prove they're trading before they can register, yet they need VAT registration in order to trade. It's a familiar frustration.

But a recent decision from the Tax Appeals Commission (published on 2 April) gives taxpayers a small but meaningful boost.

The case involved a UK business trading in goods in Ireland. The company wasn't fully operational at the time the application was submitted, but more activity was due to happen once the Irish VAT registration was in place. The company applied for VAT registration. Revenue refused. They applied again. Revenue refused again.

The matter went to the Appeal Commissioners and the outcome was clear: the company was entitled to be VAT registered.

The decision highlights the approach of the Appeal Commissioner and their commercial and practical view of what early-stage trading looks like, and the evidence presented, especially for businesses involved in the sale of goods.

Key Points Coming Out of the Decision

1. You don't need to be fully up and running to register

The business wasn't at full operational capacity and that was fine. VAT registration can (and often must) happen before trade fully begins.

2. Demonstrating supplies matters especially for goods

In this case, the ability to show that some supplies of goods were taking place, or were about to take place, was central. Movement of goods and supporting documentation carried real weight.

3. Goods businesses operate differently

Using warehouses, logistics providers, or third-party fulfilment providers is normal. The Appeal Commissioner recognised that these models don't require the same staffing or physical footprint as service businesses.

4. VAT registration is forward-looking

Section 65 VATCA requires Revenue to register persons who "are or may become" accountable. The "may become" wording was reinforced strongly here. Future trading intentions count. It's not all about the present.

5. Circular reasoning won't stand

Revenue cannot say you need VAT to trade and simultaneously you cannot get VAT registration until you have traded. The Commissioner was clear on this point.

Why This Matters

This decision won't transform the VAT registration process overnight. It remains to be seen how the decision is implemented as part of the VAT registration process. The decision does give taxpayers and advisors some solid points to rely on. It supports a more practical, commercial interpretation of the law and justifies pushing back when an early refusal doesn't align with the realities of how businesses actually operate.

Contact Us

At RBK, we can assist you with VAT registrations and your ongoing VAT obligations, whether you are preparing to start trading or already in operation. Whether related to the above or any other VAT queries you may have, please get in touch and let us show you how we can assist.

• John Moore , VAT Associate Partner, +353 1 6440100
• Roshni Jaiswal, VAT Manager, +353 1 6440100

Disclaimer: While every effort has been made to ensure the accuracy of information within this publication is correct at the time of going to print, RBK do not accept any responsibility for any errors, omissions or misinformation whatsoever in this publication and shall have no liability whatsoever. The information contained in this publication is not intended to be advice on any particular matter. No reader should act on the basis of any matter contained in this publication without appropriate professional advice.