VAT-Registered Self-Builder in Ireland — The Sole Trader Route and the 13B Scheme
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Most Irish self-builders register as a sole trader to reclaim VAT under the 13B scheme. 40–60% recovery is typical. Register before you start spending. Free, takes 10 working days. Apply via Revenue's online service. Limited company is overkill unless you're building more than one house in a 24-month period. Most self-builders register as a sole trader with Revenue. The 13B scheme reclaims VAT on materials and a portion of VAT on labour. You file VAT returns (typically bi-monthly) and reclaim the VAT. Talk to your accountant first — the right structure depends on your tax band, your income, and whether you intend to claim the VAT refund.
TL;DR
Most Irish self-builders register as a sole trader to reclaim VAT under the 13B scheme. 40–60% recovery is typical.
Register before you start spending. Free, takes 10 working days. Apply via Revenue's online service.
Limited company is overkill unless you're building more than one house in a 24-month period. Most self-builders register as a sole trader with Revenue.
When this matters most
You're at the pre-construction phase and need to decide on VAT registration.
When this doesn't apply
You've already registered, or you're using a main contractor who is the VAT-registered entity.
Frequently asked questions
Should I register for VAT as a self-builder?
Most Irish self-builders do, to reclaim VAT under the 13B scheme. 40–60% recovery is typical. Register before you start spending. Free, takes 10 working days.
What is the VAT 13B scheme?
A Revenue scheme that lets a sole-trader self-builder reclaim VAT on materials and a portion of VAT on labour. File bi-monthly VAT returns. 40–60% recovery is typical.
Sole trader or limited company for a self-build?
Sole trader is the standard for a single self-build. Limited company is overkill unless you're building more than one house in 24 months. Most self-builders register as a sole trader with Revenue.
Sources
Revenue Commissioners, VAT on residential property. https://www.revenue.ie/
Frequently asked questions
Should I register for VAT as a self-builder?
Most Irish self-builders do, to reclaim VAT under the 13B scheme. 40–60% recovery is typical. Register before you start spending. Free, takes 10 working days.
What is the VAT 13B scheme?
A Revenue scheme that lets a sole-trader self-builder reclaim VAT on materials and a portion of VAT on labour. File bi-monthly VAT returns. 40–60% recovery is typical.
Sole trader or limited company for a self-build?
Sole trader is the standard for a single self-build. Limited company is overkill unless you're building more than one house in 24 months. Most self-builders register as a sole trader with Revenue.