Key Takeaways

  • A VAT (Value Added Tax) number is crucial for businesses trading in countries where VAT is applicable.
  • Requirements for VAT registration vary depending on business turnover, country-specific thresholds, and future earning projections.
  • The VAT registration process can often be completed online, but paper forms are available for some business types.
  • Once registered, businesses must comply with VAT reporting and filing obligations.
  • Non-resident and foreign businesses may also be required to register for VAT in some jurisdictions.
  • Knowing when VAT registration is mandatory versus voluntary can help with financial planning and compliance.

How to Apply for VAT Number Online

To understand how to apply for VAT number online, you must first learn what a VAT is. VAT stands for Value Added Tax, and is a graduated tax system which is used in the European Union's 27 countries, as well as the Isle of Man and Monaco.

Businesses are required to add the VAT to the price of most products and services that are sold. This includes business-to-business sales, as well as business-to-consumer sales. It is also required for the VAT to be added to many non-sales items, including commission from sales, merchandise samples, and vending machine items.

Understanding the Purpose of a VAT Number

A VAT number is a unique identifier assigned to businesses that are registered for Value Added Tax. It allows tax authorities to track VAT transactions and ensure that businesses comply with tax obligations. This number is used on invoices, customs documentation, and tax returns. Whether you're supplying goods or services within your own country or exporting across EU borders, having a valid VAT number signals that you're compliant with VAT regulations.

Businesses without a VAT number risk non-compliance penalties, delayed customs processing, or denial of VAT reclaims on purchases. Understanding how to get a VAT number is essential for doing business legally in VAT-regulated economies.

Requirements to Apply for a VAT Account

In order to apply for a VAT account, one of the follow scenarios must apply:

  • If taxable items have been created by the register for more than two months, but less than 11 months, and the average value of the items has not been more than R4200 each month, prior to the date of application.
  • If taxable items have been created for less than two months prior to the date of registration, the taxable value of the items must exceed R4200 for the month.
  • If the taxable items have not yet been created, but a written contract is present and the taxable value of the items to be created in the next 12 months will exceed R50000 after the date of registration.
  • If a financial agreement has been entered into with a bank, creditor, authority, or non SA resident, and financial support is provided with the total repayment amount exceeding R50000 over the following 12 months of the agreement.

Who Needs a VAT Number and When to Register

You are typically required to register for a VAT number if your business meets any of the following conditions:

  • Your taxable turnover exceeds the VAT registration threshold in your country (e.g., £85,000 in the UK, €35,000 in Ireland).
  • You supply goods or services across borders within the EU.
  • You import goods into the EU.
  • You anticipate reaching the threshold within a short time frame based on contracts or business forecasts.
  • You receive services from outside the EU that require you to self-account for VAT.

Voluntary registration is also possible and often advantageous for startups expecting high setup costs. By registering early, businesses can reclaim input VAT on those expenses.

Foreign businesses that supply digital goods or services within the EU must register under special schemes like the VAT MOSS (Mini One Stop Shop), which simplifies cross-border VAT compliance.

Steps to Apply for a VAT Account Online

1. Determine whether you are registering as an individual, an agent, or an organization that is established in the state of application. You must be established in the state of application before you can register for a VAT.

2. Fill out the required VAT registration forms online. The forms should be completed and submitted through the Revenue's Online Services website. In some cases, if a paper application is sent in place of the electronic request, it will be returned to the sender and not processed.

Documents and Information Required for VAT Registration

To successfully complete your VAT registration online, gather the following documentation and business details:

  • Business name and contact information
  • Nature of your business activities
  • Tax identification number (TIN) or equivalent
  • Bank account details
  • Details of company directors, partners, or owners
  • Projected turnover and anticipated start date for taxable activities
  • Contracts or financial projections (for future-based registration)

Some jurisdictions may require additional documentation such as:

  • Certificate of incorporation
  • Articles of association
  • Utility bills for proof of address

Ensure all submitted documents are current and accurate, as discrepancies can lead to processing delays or rejections.

Printable VAT Form Types

In some circumstances where an online request cannot be sent, it is permitted for the forms to be submitted by mail to the Revenue Office. If permitted to submit a paper copy of the application form, there are two different forms to choose from depending on the type of company and account that is being requested.

For individuals, sole traders, partnerships, and trusts, the TR1 registration form at this link must be downloaded, completed and mailed to the Office of Revenue Commissions.

For limited companies, the TR2 registration form at this link must be downloaded, completed and mailed to the Office of Revenue Commissions.

The address to submit the printed copy of the forms is as follows:

Office of the Revenue Commissioners

Dublin City Centre/North City Business Taxes District

9/15 Upper O'Connell Street

Dublin 1

VAT Registration for Non-Resident and Foreign Businesses

Non-resident businesses operating in a foreign jurisdiction may still be required to obtain a VAT number in that country. This includes companies providing:

  • Digital products or software downloads
  • Online educational content
  • Subscription-based services
  • Import/export goods within the EU

Many countries allow foreign businesses to register for VAT without having a local office or branch. However, some may require appointing a fiscal representative, particularly if the business is based outside the EU.

Online portals often support foreign VAT registration, but regulations vary. It’s crucial to consult local tax authorities or a VAT specialist when operating across borders. UpCounsel can help connect you with legal professionals familiar with international VAT registration requirements.

After the VAT Registration Is Complete

Typically, the VAT registration certificate will be sent and received within about 14 days of the application. After the VAT registration form is submitted for the company, an effective date will be chosen. The effective date is essentially the date the tax requirements will be effective. The effective date of the VAT will always be on or after the beginning date of the taxable period in which your VAT application was submitted. It will never be before this date.

After registering for a VAT, there are a few requirements that must be followed. If there are any changes to the registration information you provided, the changes must be reported to the Office of Registration within 30 days of the change. Once you have been registered for the VAT, tax returns are required to be submitted electronically, along with any required payments. More details on the requirements can be found in the e-filing portion of the website.

If you have any questions while submitting or waiting for the certificate, you can reach out to the VAT Hotline, which is open Monday through Friday from 8 AM to 8 PM.

What Happens If You Don’t Register for VAT?

Failing to register for VAT when required can result in significant consequences, including:

  • Backdated VAT liabilities – You may be required to pay VAT on past sales, even if you didn’t charge your customers.
  • Financial penalties – Fines for late registration or non-compliance vary by country but can be substantial.
  • Interest on unpaid VAT – In addition to penalties, interest may accrue on overdue amounts.
  • Audit risks – Unregistered businesses exceeding the threshold may be flagged for investigation.

If you discover you should have registered earlier, voluntary disclosure to tax authorities is often viewed more favorably and can reduce penalties.

Frequently Asked Questions

  1. What is a VAT number used for?
    A VAT number is used to track and report Value Added Tax transactions between businesses and tax authorities. It appears on invoices and tax filings.
  2. How do I know if I need to register for VAT?
    If your taxable turnover exceeds your country’s threshold or you conduct cross-border trade in the EU, you likely need to register.
  3. Can a U.S.-based business get a VAT number?
    Yes. U.S. businesses selling digital services or goods into the EU may be required to register for VAT and can often do so online without a physical presence.
  4. How long does it take to get a VAT number?
    VAT registration processing times vary but generally range from 1 to 4 weeks, depending on the country and the accuracy of your documentation.
  5. Can I recover VAT paid before registration?
    In some countries, yes. If the expenses are related to setting up your business, you may be able to reclaim VAT retroactively once registered.

If you need help with how to apply for VAT number online, you can post your legal need on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.