Sole Trader and business greenhorn - Couple of (domestic) VAT questions

Yes, you should apply for ‘intra-EU’ status because you are trading with businesses elsewhere in the European Union. The fact that your services are only supplied to Irish businesses does not rule you out from applying for it and having an intra-EU VAT registration number will allow you to acquire goods and services from suppliers in other Member States at 0% VAT rate. You would then simply self-account for the purchases in your VAT return and claim deductibility where applicable at the same time. Because you have a ‘domestic-only’ VAT registration number at present, the foreign trader is obliged to charge you domestic VAT at the rate applying in his/her own Member State. So the 1st step is to contact the Tax office dealing with your tax affairs and advise them that you are purchasing goods and services from other EU Member States and that you require an intra-EU number. They will advise you of any additional information they need from you to allow them to facilitate your request. When you say that you ‘simply pay the full whack and suck it up’, I’m assuming that you haven’t tried to claim back the VAT you paid to suppliers in other Member States. Any Irish VAT registered trader who has paid VAT in another EU Member State can claim the VAT back from that Member State. This can be done by submitting a claim via Revenue Online Service (ROS) under the Electronic VAT Refund (EVR) system. Ask your accountant about this or look it up on the Revenue website - Revenue.ie.  With regard to your purchase of petrol, this can’t be reclaimed even when used for business purposes. Finally, the revenue and expenses figures in your accounts should be net of VAT if you are VAT registered and able to reclaim the VAT.