To successfully register for VAT you’ll need to use an address where you actually carry out or perform your business activities. In other words you need to be performing an activity at the physical address. This requirement presents a challenge when it comes to using a bare virtual office for VAT registration purposes. But there is a solution.
So how do we solve the problem?
For the many business owners who have embraced remote working most of the time performing your activities will be while working from home. This avoids the expense of renting a physical office space. In these cases, the Revenue Commissioners would like to see your home address as your VAT registered address. But this is not ideal. You loose your privacy because your home address must be published on all your VAT invoices. Your professional image and your credibility with future customers and suppliers is also tainted by using your home address.
There is a way to overcome this VAT registration issue.
The help solve this problem our virtual office solutions have been designed not only to allow use of the address for your post, but also to facilitate the performance of your business activities at the physical address.
This is achieved by frictionless access to office spaces, meeting rooms and shared desk areas on a pay as you work basis. So for example, when you purchase a virtual office from us you’ll have the option to access the physical space to carry out your work. So for example, you can also use the physical address to hold board meetings, team gatherings or meetings with suppliers and customers.
If you also need a written licence agreement showing that you have physical workspace at 20 Harcourt Street then we have a specific Virtual Office Combination Plan designed for you. A combination plan is highly recommended if want to use the address for VAT registration and it includes the business address plus a written licence agreement and 4 days coworking space access per month which proves that you have access to a physical workspace at your Dublin address.
This ability to perform activities at the address connects your office address and the physical office building with your business. When you apply for VAT registration this will assist you in demonstrating that you carry out activities at the address.
The Combination membership is more expensive than the virtual office alone but it continues to represent big cost reduction when compared against the cost of a private office space.
Proof of service
If you sign up for a Virtual Office with us, we’ll provide you with a written proof of service which describes the services to include your right to access the physical office spaces. This can help if you are asked for a proof that you have an business address in Ireland.
Check if you even need to register for VAT
Remember that you may not even need to register for VAT. If you don’t then you can forget about the requirement to use the physical space and simply use the address for your business mail, website and marketing materials. Whether or not you need to register will depend on your annual turnover. If you’re unsure about the VAT thresholds then you can read more in our post entitled Irelands Tax Structure.
We hope this post has helped you to understand how you can apply to register for VAT by using an enhanced virtual office solution / coworking membership.
If you’re interested in our Dublin Virtual Office Plans then you can purchase one online from us.
You might also be interested in a related post called Are Virtual Offices Legal.
Note that we are not tax advisors. Advise from qualified professionals should be sought in connection with matters of taxation and company law.