Ireland SME rules

SME Scheme – General features

Exemption

It is possible to opt for the SME scheme in Ireland.

Transactions excluded from the SME scheme

• Under Irish VAT legislation turnover thresholds do not apply to persons engaged in property transactions i.e., there is a nil threshold for a person who makes a supply of immovable goods,
• Occasional transactions, like the supply before first occupation of a building or parts of a building or the supply of building land,
• Exempt cross-border supplies of new means of transport made from one Member State to another.

National annual threshold

Thresholds from 1 January 2025:

• €42,500 in the case of persons supplying services only.
• €42,500 for persons supplying goods liable at the reduced or standard rates which they have manufactured or produced from zero rated materials.
• €85,000 for persons supplying both goods and services where 90% or more of the turnover is from the supplies of goods other than goods referred to above.

• €85,000 for persons supplying goods.

                                      

Information on the national annual threshold is available on TEDB.

Domestic SME scheme

A small enterprise established in Ireland who applies the SME scheme in Ireland only (domestic SME scheme) has no VAT reporting obligations.

Cross-border SME scheme

The cross-border SME scheme applies in the following situation(s):

1. The small enterprise applies the SME scheme in other Member States than the Member State of establishment, or;
2. The small enterprise applies the SME scheme both in the Member State of establishment and in other Member State(s).

Simplified VAT obligations

The VAT registration in each Member State where the small enterprise applies the SME scheme is replaced by a single prior notification to be submitted in the Member State of establishment. 

The periodical VAT returns are replaced by a single quarterly report for all Member States to be submitted in the Member State of establishment. 

Currency

The values of supplies of goods and services to indicate in the prior notification, in the update to a prior notification and in the quarterly reports must be in EUR. 

Way of submission

The prior notification, the update to a prior notification and the quarterly reports should be submitted by electronic means on this page.

Additional simplified VAT obligations

Exempt small enterprises applying the cross-border SME scheme in Ireland are released from the following VAT obligations:

• to issue invoices for B2C supplies
• to issue full invoices for B2B supplies
• to submit administrative statements

Loss of simplified VAT obligations

Not applied.

Transitional period

Ireland does not apply any transitional period in case the relevant national sectoral threshold is exceeded during the current calendar year.

Quarantine

The quarantine period is one calendar year where the Union annual threshold is exceeded. 

The quarantine period is one calendar year where the national annual threshold (or sectoral threshold) is exceeded.

You can consult the quarantine period applicable in Ireland on TEDB database.

Quarantine period in case of voluntary departure from the SME scheme

In case of voluntary departure from the SME scheme no quarantine period is imposed in Ireland (see TEDB).

Appeals

Domestic SME scheme

Appeals should be addressed to your Member State of Establishment (MSEST)

Cross-border SME scheme

Member State of Establishment (MSEST)

Appeals related to the following topics should be addressed to MSEST:

• Union annual turnover
• Other exclusion(s) by the MSEST (e.g. assumption that taxable activities have ceased)

Member State of Exemption (MSEXE)

Appeals related to the following topics should be addressed to MSEXE:

• National annual turnover
• Denial of access to the cross-border SME scheme in MSEXE
• Exclusion for exceeding the national annual threshold/sectoral threshold in MSEXE