Since 15 June, when registering for VAT, you must select whether you want to apply for “domestic only” or “intra-EU” VAT status. This requirement is part of the new Two-Tier VAT Registration system being implemented by Revenue which is expected to be fully operational by September 2019.

“Domestic only” status will apply to taxpayers not involved in any intra-EU trade while taxpayers who intend to trade within the EU should apply for “intra-EU” status and may need to provide additional documentation. Taxpayers who have previously registered for VAT before the introduction of the Two-Tier system will automatically be treated as having “intra-EU” status and do not need to contact Revenue.

The Institute has been involved in discussions on the new system at TALC meetings particularly in relation to the practical issue of domestic registrants who may from time to time need to purchase suppliers from outside of Ireland. Revenue advise that these cases may at any time apply for “intra-EU” status but must supply additional information. Talks continue and we will keep members updated.

Further changes are expected in mid-September to accelerate processing times for domestic only applications. Read more on this change in Revenue’s eBrief 114/19 and related guidance.