Trading Online Voucher: An Easy & Complete Guide For 2022

Trading Online Voucher Program

The Numbers & Stats

According to the data collected and published by Enterprise Ireland only 23% of small businesses in Ireland are engaged in the digital marketplace in a meaningful way. This percentage is even lower for small businesses with ten employees or fewer. Consequently, seventy per cent of online purchases from Irish customers happen internationally.

How does this translate to real numbers then?

If we define eCommerce as the selling of physical goods through a digital channel via either a desktop or a mobile device, the eCommerce market in Ireland amounts to 280 million Euros in 2021. Before the COVID-19 pandemic, this revenue was expected to grow by 8.6% per cent on a yearly basis with the fashion industry leading the way with a market volume of seven hundred and eighty-nine million Euros worth of revenue in 2020.

As of the 21st of May in 2020, the Local Enterprise Offices have received more than 3,000  applications for the Trading Online Voucher Program, which led to more than 1250 approvals. The average amount granted to businesses that were selected is deemed around 2,300. Another interesting piece of data comes from the IE Domain Registry (IEDR) which noted a 30% yearly increase in domain registrations in the second quarter of 2020.

The €2.5k Trading Online Voucher – General Questions

What Is The Trading Online Voucher?

The Trading Online Voucher Program is a funding initiative by the LEO under the Irish Government’s National Digital Strategy. Funding of up to €2,500 is available to small Irish businesses that wish to improve their online trading capacity and reach new markets via the web.

Which Businesses Can Apply For The Trading Online Voucher Program?

The program has been designed for small start-up and scale-up businesses based in the Republic of Ireland which have been trading for at least six months, have ten employees or fewer, and a yearly revenue of two million Euros or less.

Trading Online Voucher Program – Rules

What are the terms of the program?

The following is the list of items and requirements to avail of the Trading Online Voucher Program. There are two vital things to consider: the maximum value of the grant is €2,500  or 50-90% per cent of the eligible expense, exclusive of net or VAT, and the business must acquire approval before incurring any expense. The complete list of terms to consider is as follows:

•             Vouchers will have a maximum value of €2,500 or 90% to 50% of eligible expenditure (Net of VAT), whichever is the lesser
•             Voucher approval must be gained prior to incurring any expense
•             Own labour is not considered an eligible expense
•             Third party costs only will be considered
•             All third party/supplier invoices must contain proper business details (e.g. Tax and Business Registration details).

Which Criteria Does A Business Need To Meet To Qualify For The €2,500 Trading Online Voucher Grant?

In order to qualify for receiving a Voucher, your business must fit the following requirements:

•     The business has ten or fewer employees;
•     The business has limited or no digital presence;
•     The annual turnover is less than two million Euros;
•     The business must have been trading for at least six months;
•     The business must be located in an area covered by the LEO where the application is submitted (LEO’s cannot accept applications for businesses located outside of their jurisdiction)

Which projects/businesses are considered ineligible for the €2,500 Trading Online Voucher Grant?

Projects and/or businesses that fall under one or more of the following categories are considered ineligible for the €2,500 Trading Online Voucher Grant.

•             Charities, commercial semi-state companies, trade associations or company representative bodies such as the Chamber of Commerce
•             Not for Profit’ or social entrepreneurship applicants operating under a commercial domain
•             IT companies or agencies
•             Conferences and Seminars
•             Projects that are not compliant with public policy
•             Duplication of support for projects which would be eligible for assistance from other State Agencies of EU funded Operational Programmes
•             Companies with more than 10 people
•             Projects deemed to be capable of proceeding in any event without scheme assistance i.e. dead-weight
•             Projects essentially comprising importation and distribution.

What Can The €2,500 Trading Online Voucher Grant Be Used For?

•     IT consultation;
•     Development or upgrade of an e-commerce website;
•     Implementing online payment or booking systems;
•     Purchase of internet-related business software;
•     Purchase of online advertising (this purchase cannot make up more than 30% of the approved Trading Online Voucher amount and may only be drawn down in one payment phase);
•     Developing an app or multi-platform web page;
•     Implementing a digital marketing strategy via social media or other;
•     Consultation with ICT experts for early-stage adopters of online strategy;
•     Training and skill development specifically targeted at establishing and managing online trading activity

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What Can’t The €2,500 Trading Online Voucher Grant Be Used For?

 Purchases that are not qualified for the grant include building brochure websites, non-internet related software, and anything unrelated to online trading activity.

Can The €2,500 Trading Online Voucher Grant Be Used For An Online Subscription?

Yes, the Trading Online Voucher Grant can be used for subscriptions to low-cost online retail platform solutions.

The Trading Online Voucher Program – How To Apply

To apply for the LEO’s Trading Online Voucher program, two steps need to be followed:

1.           Attending the Trading Online Voucher Information Seminar (or Webinar)
2.           Submitting the Trading Online Voucher Application Form* along with quotes from three (3) suppliers and evidence of duration of trading.

Trading Online Voucher Program – The Information Seminar

To qualify for the Trading Online Voucher, you must first attend a Trading Online Voucher information seminar where you will be provided information about the program and recommendations on how to get the best out of the funding available. The seminar covers a wide variety of topics including website development, digital marketing, social media for business, and search engine optimisation (SEO). The information you will be provided is robust, objective, and certified. It will enable you to make your own decisions about your business, confident that you are making the right choices. Seminars of this nature are regularly hosted at your Local Enterprise Office.

How to sign up for the Trading Online Voucher program information seminar?

You can apply for the seminar by visiting your Local Enterprise Office’s website where they can proceed as follows:

1.           Click on Training and Events;
2.           Click on the seminar you want to attend;
3.           Click on ‘Book Now’.

Trading Online Voucher program – Application Form

Where can one download the application form?

The application form will be emailed to everyone who attends the mandatory seminar or webinar, provided they meet the qualifying criteria.

Trading Online Voucher program – Elements Details

In the application form, you will be required to select elements details from a list that includes:

•     IT consultation;
•     Development or upgrade of an e-commerce website;
•     Implementing online payment or booking systems;
•     Purchase of internet-related business software;
•     Purchase of online advertising (this purchase cannot make up more than thirty per cent of the approved TOV amount and may only be drawn down in one payment phase);
•     Developing an app or multi-platform web page;
•     Implementing a digital marketing strategy via social media or other;
•     Consultation with ICT experts for early-stage adopters of online strategy;
•     Training and skill development specifically targeted at establishing and managing online trading activity

Which documents should one submit with their application?

•             Copy of a quotation from three suppliers;
•             Evidence of duration of trading.

It has enabled businesses that have already taken advantage of the program to apply the second time for another voucher.

The second voucher can be used to further improve and expand a businesses’ digital footprint.
In the initial round of the program businesses were required to pay half the cost of the project but now only a ten per cent investment – up to two hundred and fifty Euros – is all that’s required from businesses to add up to the maximum grant of twenty-five hundred Euros.

The second opportunity is part of a wider response by the Irish government and your Local Enterprise Office to help Irish businesses fight the crisis brought about by the pandemic. This response also includes Business Continuity Vouchers and Covid19 Business Loans. For more information, please refer to your local LEO website.