FAQ

What’s the difference between sole trader and self-employed?

Different labels, same meaning. If you run your own, you can be considered a sole trader / self-employed. To become a self-employed / sole trader you must register for Income Tax on Revenue.
Can I move from sole trader to limited company?

Yes, you can, anytime, check with your advisor before to have the best tax efficiency. Moving from sole trader means you will incorporate a company which is a new entity with new responsibilities, however, you have to keep your Income Tax registration active if you are the Director of the company or Relevant Shareholder.
Can I own a company and not be the Director or Secretary?

Sure, you can be a beneficial owner of a company and not engage in trading activities or business.
If I am non-resident, can I become director of an Irish Company?

Yes, for non-residents you must pay a Non-EEA Resident Director Bond under section 137 for The Companies Act 2014.
Can I write down my own company’s constitution?

Yes, you can write your constitution if the constitution doesn’t conflict with the Companies Act 2014 or amendments. It represents a binding agreement between the company and its directors/shareholders. You can file a simple constitution and prepare the amendments in the future.
What is VAT?

VAT is the acronym for Value-Added Tax. That Tax is for all taxable and accountable persons. The tax is payable on sales of goods and services withing Europe and ultimately payable by the final consumer. Each party in the chain of supply acts as a VAT collector. E.g. I am a coffee shop and sell you a Delicious Café which costs €3+VAT (13.5%) it means you will pay for that Café €3.41, at the end, you paid 41 cents more to me, my obligation is collect that money and repay to the revenue every Vat return. There are much more about VAT but for logical understanding the example above were made.
What are the VAT rates?

There are 5 different VAT rates in Ireland: 1) Standard rate 23% 2) Reduced rate 13.5% 3) Second reduced rate 9% 4) Zero Rate 5) Livestock rate 4.8% You have to check the VAT rate database to give the correct treatment to your product or service, you might have different products and different rates on your business.
Can I claim VAT on purchases?

Yes, if you are registered for VAT you can claim the VAT on your purchases. That claim is a part of your VAT return where you file the T1 (vat on les) less T2 (vat on purchases).