Section 56B authorisation for exporters
Updated: July 2026
An exporter's VAT life is repetitive: pay 23% on nearly everything coming in, charge 0% on nearly everything going out, then claim the difference back on every single VAT3. The refunds arrive, but the cash sits with Revenue in the meantime. Section 56B authorisation, often just called a 56B or VAT 56 authorisation, removes the merry-go-round: qualifying businesses receive most goods and services at the zero rate in the first place.
Who qualifies
The core test is that 75% or more of your annual turnover comes from zero-rated intra-EU supplies and exports of goods. It is aimed at manufacturers and distributors shipping most of their output abroad, the backbone of a lot of Irish industry. You apply to Revenue, and the authorisation is issued for a period and renewed on review.
How it works day to day
- You give a copy of the authorisation to your suppliers, quoting your VAT number.
- Suppliers zero-rate their invoices to you and note the authorisation on each invoice. Their sale is legitimate at 0% and your working capital stops cycling through refunds.
- The zero-rating covers most goods and services bought for the business, with carve-outs where deduction would never have been allowed anyway, such as passenger cars, petrol, food and drink, and entertainment. Those still arrive with VAT and follow the normal deduction rules.
- Imports can also come in at 0% under the authorisation, which stacks with postponed accounting for anything outside its scope.
The responsibilities that come with it
The authorisation is a privilege with teeth. Use it for purchases outside the business, or keep using it after your export share falls below the threshold, and the VAT that should have been charged becomes your liability, with interest. Suppliers are protected when they rely on a copy of a current authorisation in good faith, so keep yours renewed and withdraw copies if your circumstances change. For most qualifying exporters the trade-off is easily worth it: one authorisation replaces a permanent refund position and the audit attention that oversized refund claims attract.
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Common questions
What is a Section 56B authorisation?
It is a Revenue authorisation that lets a qualifying Irish business receive most goods and services, and imports, at the 0% VAT rate. It exists so heavy exporters are not permanently paying VAT and waiting for refunds.
Who qualifies for 56B authorisation?
Businesses whose zero-rated intra-EU supplies and exports of goods make up 75% or more of annual turnover. Application is made to Revenue and the authorisation is renewable.
Does a 56B cover everything I buy?
No. Categories where VAT deduction is blocked anyway, such as passenger cars, petrol, food and drink and entertainment, are excluded and still carry VAT under normal rules.