Value Added Tax (VAT) is a tax on sales of goods and services charged in Ireland. VAT is charged by VAT registered businesses when they sell to either private individuals or other businesses. In order to be VAT registered in Ireland, businesses must register with Revenue – the Irish tax authority. When a business registers for VAT they are issued a unique VAT registration number which serves to identify that business for VAT purposes. Businesses are required to display their VAT number on all VAT invoices and credit notes they issue to their customers. Customers can use a supplier’s VAT number to verify that the supplier is VAT registered in Ireland. This article will explain how you can look up an Irish company’s VAT number.
What is VAT?
Value Added Tax or VAT is a tax on consumer expenditure and is charged on most goods and services that VAT-registered businesses provide in Ireland. It is an indirect tax because the end consumer ultimately bears the cost.
VAT is charged as a percentage of the sale price of taxable goods and services. The standard rate of VAT in Ireland is 23%. There are also reduced VAT rates of 13.5% and 9% that apply to some goods and services like food, accommodation services, and printed matter like books and newspapers.
Some goods and services are exempt from VAT or are charged at the zero rate. Examples include most food, children’s clothing, oral medicine, passenger transport, and exports.
VAT registered businesses charge VAT on their sales known as output VAT. Those businesses can reclaim VAT they pay on their purchases known as input VAT.
Why Do Businesses Have a VAT Number?
In order to charge VAT on sales of goods and services, a business must register for VAT in Ireland. VAT registration is administered by the Revenue Commissioners who are Ireland’s tax authority.
When a business registers for VAT they are issued a unique VAT registration number by Revenue. This serves to identify that business for VAT purposes.
A VAT number usually takes the following format in Ireland:
IE123456789TA
Where:
IE – the two letter country code for Ireland
123456789 – a unique 9 digit number identifying the trader
TA – the last 2 letters indicate the taxable activity. TA stands for taxable activity.
Once registered, businesses are required to display their VAT number on all VAT invoices, sales receipts, and credit notes that they issue to customers.
Customers can use a supplier’s VAT number to verify that the supplier is registered for VAT in Ireland and can legally charge VAT. This helps to prevent VAT fraud.
Who Needs a VAT Number in Ireland?
The following businesses are required to register for VAT in Ireland:
– Businesses whose annual turnover exceeds the VAT registration threshold. The current VAT threshold is €75,000 in Ireland.
– Businesses who purchase goods in Ireland from other EU member states exceeding €41,000 in a calendar year. This is known as Intra-Community Acquisitions.
– Businesses who provide certain services to customers that are not registered for VAT in Ireland
– Businesses who manufacture or construct goods and wish to purchase raw materials VAT free within the EU
In addition, businesses can also voluntarily opt to register for VAT even if their turnover is below the VAT threshold. Reasons they may wish to do this include:
– The ability to reclaim VAT on purchases and expenses
– Appearing more credible to customers by having a VAT number
– Complying with contractual obligations
So in summary, if a business makes sales above the VAT threshold, purchases goods from other EU states extensively, provides services to overseas customers, manufactures goods, or simply chooses to, then they should register for VAT in Ireland and obtain a VAT number. This VAT number serves to identify them as a VAT registered trader.
How to Check a Company’s VAT Number
There are several ways customers can check and validate an Irish company’s VAT number:
1. VAT Number Format Check
The first check is on the format and structure of the VAT number provided. As outlined above, Irish VAT numbers follow a specific format:
IE123456789TA
So customers can do an initial check themselves that the format looks correct with the IE country code, 9 digit taxable person number, and TA taxable activity suffix.
2. VAT Number Search on Revenue Website
The Revenue Commissioners provide a VAT number validation service on their website at: https://www.revenue.ie/en/companies-and-charities/submitting-company-details/how-to-validate-a-vat-number.aspx
To validate a VAT number you simply enter the VAT number and click ‘Validate’. It will then confirm if the number is valid or not.
This is the quickest way to check if a VAT number is valid and that the supplier is registered for VAT with Revenue.
3. VAT Information Exchange System (VIES)
As well as validating Irish VAT numbers, customers can also check VAT numbers from other EU member states through the EU VIES system.
VIES can be accessed at: http://ec.europa.eu/taxation_customs/vies/
To check a VAT number you enter the EU country code and VAT number and it will confirm if it’s valid and the business name and address. This allows customers to validate VAT numbers from suppliers in other EU countries.
4. Request VAT Invoices
When making purchases from Irish VAT registered suppliers, customers should request a proper VAT invoice. A valid VAT invoice serves as confirmation that the supplier is VAT registered.
The VAT invoice should clearly display the suppliers VAT details including VAT number, business name, and address.
Reasons to Check a VAT Number
There are a number of important reasons why consumers and businesses should check a supplier’s VAT details:
– **Validate VAT Registration** – Checking a VAT number confirms if the supplier is genuinely VAT registered in Ireland or the EU. This prevents paying VAT to fraudulent businesses not registered for VAT.
– **VAT Fraud Protection** – VAT fraud costs governments billions in lost revenue annually. Checking VAT numbers helps combat this fraud.
– **Avoid Penalties** – In some cases customers can be penalized for not checking a supplier’s VAT status and number. This is particularly important for Intra-Community Acquisitions from EU states.
– **Claiming Tax Refunds** – To claim VAT refunds on purchases, you must hold valid VAT invoices from VAT registered suppliers. Checking the VAT numbers helps validate this when claiming VAT refunds.
– **Due Diligence** – Checking supplier VAT details is an element of due diligence in the procurement process. It provides assurance they are compliant and credible.
So in summary, validating a supplier’s VAT number is an important control for consumers and businesses to prevent fraud, avoid penalties, enable tax reclaims, and support due diligence.
How to Report Invalid or Suspicious VAT Numbers
If a customer identifies or suspects that a supplier’s VAT number is invalid or suspicious, they should report it to Revenue.
This helps to prevent VAT fraud and protect VAT revenue that funds public services.
To report an invalid or suspicious VAT number to Revenue:
– Email Revenue at [email protected] providing details on the VAT number and why you believe it is invalid or suspicious.
– Call Revenue on +353 1 702 3011 to report invalid VAT numbers over the phone
– Submit a report through MyEnquiries on the Revenue website: https://www.revenue.ie/en/online-services/support/myenquiries/central-reference/suspected-shadow-economy-activity.aspx
Revenue encourages reports from the public on suspicious VAT activity including invalid numbers or potential VAT fraud. Reports can be submitted anonymously.
Revenue will investigate all reports received and take action where necessary including deregistering fraudulent VAT numbers being used or pursuing prosecutions. Reporting helps protect VAT revenues and combat VAT fraud.
Conclusion
A VAT registration number is a unique identifier for businesses registered for VAT in Ireland and across the EU.
Consumers and businesses can check an Irish company’s VAT number using the Revenue validation tools or EU VIES system.
Validating a supplier’s VAT number is important for verification, fraud prevention, ensuring compliance, and enabling tax reclaims.
If an invalid or suspicious VAT number is identified, it should be reported to Revenue who can investigate and take appropriate action.
Checking and reporting dodgy VAT numbers helps combat VAT fraud and protects the significant VAT revenues that fund public services in Ireland.
Summary of Steps to Check VAT Number
Ireland
– Check format – IE123456789TA
– Validate on Revenue website
– Request VAT invoice from supplier
– Report invalid numbers to Revenue
EU
– Check format – CountryCode123123123
– Search on VIES VAT Information Exchange System
– Request VAT invoice from supplier
– Report suspicious numbers to local tax authority
Frequently Asked Questions
What is a VAT number in Ireland?
A VAT number is a unique tax registration number issued to businesses who register for VAT in Ireland with Revenue. It has a format like IE123456789TA and serves to identify a business for VAT purposes.
Where do I find a company’s VAT number?
A company’s VAT number should be displayed on all VAT invoices, receipts and credit notes issued by VAT registered businesses in Ireland. It is also publically searchable on the Revenue website.
Can I validate an Irish VAT number online?
Yes, you can validate Irish and EU VAT numbers online using the following:
– Revenue VAT Number Checker – For Irish VAT numbers
– VIES VAT Information Exchange – For VAT numbers across the EU
What happens if a company provides an invalid VAT number?
If a business provides an invalid or false VAT number it likely indicates VAT fraud. Consumers or businesses who knowingly transact with such traders could potentially face penalties or non-deductibility of VAT. Invalid VAT numbers should be reported to Revenue.
How can I report a suspicious VAT number?
You can report invalid or suspicious VAT numbers to Revenue by email, phone or online submission. Details on how to report are provided earlier in this article. Revenue encourages reports to help tackle VAT fraud.
VAT Verification – Ireland vs Other EU Countries
| Country | VAT Number Format | Online Validation Tool |
|---|---|---|
| Ireland | IE12312312TA | Revenue VAT Number Checker |
| Germany | DE123456789 | Bundeszentralamt für Steuern |
| France | FRXX 999999999 | Impôts API |
| Spain | ESA12345674 | Agencia Tributaria |
| Italy | IT12345678901 | Agenzia delle Entrate |
Conclusion
Checking a supplier’s VAT details offers assurances they are a valid VAT registered business not engaging in potential fraud. It also helps protect consumers and businesses from penalties for transacting with non-compliant entities.
Online tools available on Revenue and VIES make it straightforward to validate an Irish or EU VAT number. If discrepancies arise, prompt reporting to tax authorities helps tackle VAT fraud.
Validating and reporting suspicious VAT activity plays an important role in securing the VAT revenues that fund vital public services.
