VAT Rates Ireland - What You Need to Know

In short: Ireland has a standard VAT rate of 23%, reduced rates of 13.5% and 9%, a 4.8% livestock rate, and a 0% rate for zero-rated supplies. Irish VAT returns are usually filed every two months and are due on the 19th of the following month, or the 23rd if you file online through ROS.

If you sell to customers in Ireland, you need to know Irish VAT rates and Irish VAT rules. This guide takes you through Ireland’s VAT system. It covers VAT rates, registration, compliance and special schemes. It also looks at the impact of Brexit on VAT and how technology can make VAT easier to manage.

When was VAT introduced in Ireland?

Value Added Tax in Ireland was introduced in 1972. Ireland is an EU Member State, so Irish VAT laws were first created using EU directives. The Irish tax authority is the Office of the Revenue Commissioners, which began in 1923.

What are the VAT rates in Ireland?

Ireland’s VAT rates are 23% (standard), 13.5% and 9% (reduced), 4.8% (livestock) and 0%. Value Added Tax (VAT) is a consumption tax on goods and services in many countries, including Ireland. VAT is a key part of Ireland’s tax system. It raises a lot of revenue for the government and supports economic growth. Whether you run a business or shop in Ireland, it helps to know how VAT works and which rates apply.

Standard VAT rate:

The standard VAT rate in Ireland is 23%, and it applies to most goods and services. For example, if you buy an item or service for €100, the VAT added is €23. The total cost is then €123. The standard rate applies to items like electronics, clothing and furniture. It also covers services like entertainment.

Reduced VAT rates:

Ireland also has reduced VAT rates for certain goods and services. The reduced rates are:

• 13.5%: The 13.5% VAT rate applies to certain items, such as fuel, building services and hotel accommodation.
• 9%: The 9% VAT rate covers some foodstuffs, gas and electricity, use of sports facilities, hairdressing, and admission to certain cultural events. Since 1 July 2026, it also covers food served in restaurants and by caterers.
• 4.8%: The reduced VAT rate of 4.8% applies specifically to agricultural supplies, including most livestock.

Exemptions and zero-rated supplies:

Some goods and services in Ireland are either exempt from VAT or subject to a 0% VAT rate. In both cases, no VAT is charged, but there is a small difference. With exempt supplies, you don’t charge VAT, and you can’t reclaim the VAT you paid on related costs. With zero-rated supplies, you don’t charge VAT, but you can reclaim the VAT you paid on inputs.

In 2023, the Irish government moved certain products to the 0% VAT rate. These include newspapers and periodicals, and selected pharmaceutical and health-related products. You can also read Extended Application of Reduced VAT Rates.

When do you need to register for VAT in Ireland?

You must register for VAT in Ireland if your annual turnover is above the VAT threshold for your business activities. For distance selling, the threshold is €10,000 per year. To register for VAT, you complete Form TR1 and submit it to the Irish tax authorities. Individuals, sole traders, trusts and partnerships use Form TR1. Limited companies use Form TR2.

VAT registration lets you charge VAT at the right rate on your goods and services and claim VAT on your purchases. If you fail to register or charge VAT wrongly, the Irish Revenue can charge interest and penalties. So you need to know when and how to register for VAT in Ireland. We cover this in more detail in Austria VAT Rate and Compliance.

How do you stay VAT compliant in Ireland?

To stay VAT compliant in Ireland, you need to know your filing frequency, the invoicing rules and the deadlines for submission.

The sections below look at each of these areas. They will help you handle VAT compliance and avoid common pitfalls.

Filing frequency

Most businesses file their Irish VAT return every two months. However, companies that are always in a repayment position may choose to file monthly. This gives more frequent updates on their VAT. Eligible businesses can also file annual VAT returns, which is a more combined way to report.

Along with the regular Irish VAT return, you must also submit the Annual Return of Trading Details. This is a fuller report on your taxable supplies during the year. It helps the Irish tax authorities check that the VAT collected and paid during the year is accurate.

Invoicing requirements

Proper VAT invoicing sets out the VAT due and lets VAT-registered customers reclaim the VAT on their purchases. In Ireland, you must meet specific invoicing rules, including issuing a proper VAT invoice. These requirements include:

• Issuing the invoice on the date of supply or by the 15th day of the subsequent month
• Including a distinctive sequential number
• Incorporating the customer’s VAT identification number if applicable
• Indicating the amount of VAT being charged

By following these invoicing rules, you can:

• Ensure compliance with Irish VAT legislation
• Maintain accurate records of your VAT transactions
• Facilitate VAT return preparation
• Avoid potential disputes with customers or tax authorities

Deadlines and submission

VAT returns in Ireland are due on the 19th of the month after the reporting period. If you file electronically, you have until the 23rd. Deadlines matter, as missing them can lead to penalties and interest from the Irish Revenue. You can file VAT returns online through your ROS account. You can also complete the form in the ROS Offline application and upload the file.

What are your VAT obligations for cross-border sales?

For cross-border sales, you need to understand distance selling thresholds, place of supply rules and the reverse charge. The distance selling threshold no longer applies to Irish businesses selling to UK consumers post-Brexit. This shows how the Brexit transition period affected foreign sales.

When you sell services to other businesses in the EU, the reverse charge mechanism often applies. The customer then accounts for VAT on the purchase in their own VAT return. For supplies to non-business customers outside the EU, the sales are exempt from VAT. But you must provide proof of the customer’s status.

To stay compliant with VAT rules on cross-border sales, keep up with the latest rules. Ask a tax professional for advice if needed.

What are OSS, IOSS and VIES?

OSS (One Stop Shop), IOSS (Import One Stop Shop), and VIES (VAT Information Exchange System) are special VAT schemes. They make it easier to declare and pay VAT on cross-border sales. They let you register and pay VAT in one EU Member State.

VAT OSS is a VAT scheme for several types of businesses. These include businesses that provide telecoms, broadcasting and e-services to private consumers. OSS also covers businesses that supply services across borders within the EU on a Business to Consumer (B2C) basis.

IOSS makes it easier to declare and pay VAT on imported goods covered by the scheme. These are goods located outside the EU at the time of sale and sent in consignments with an intrinsic value of no more than €150.

VIES helps make sure the 0% tax rate is applied correctly in intra-community sales. VIES also helps EU tax authorities share information.

By using these special schemes and maintenance services, you can make VAT easier to manage and meet your cross-border VAT obligations.

VAT and Brexit: How to charge VAT to UK companies

To charge VAT to UK companies post-Brexit, you apply the reverse charge for VAT-registered businesses. You charge Irish VAT to businesses that are not registered. Under the reverse charge, your invoices must state “reverse charge will apply” and include the customer’s VAT number. The customer then reports the VAT to the relevant tax authorities.

Brexit can make VAT more complex, so businesses should:

• Ask a tax professional or an accountant who knows VAT rules for advice. This helps you follow the latest rules and any changes that may come.
• Stay informed and proactive in addressing VAT changes resulting from Brexit.

How can technology help you manage VAT?

VAT compliance software, such as the tools offered by Taxually, helps you manage VAT, check for errors and prepare VAT returns. This helps you comply with Irish VAT legislation.

VAT technology lets you automate and simplify how you manage VAT. This lowers the risk of errors and non-compliance. VAT rules change often. Using technology can give you an edge and peace of mind when you meet your VAT obligations.

What should you remember about Irish VAT?

Knowing Ireland’s VAT rates and rules is key for any business selling there. Stay informed about VAT registration, compliance, cross-border VAT and special VAT schemes. This helps you trade smoothly and compliantly in the Irish market. And with help from VAT experts and VAT compliance technology, you can manage your VAT obligations more easily.

How Taxually handles this

Taxually’s CrossTax handles VAT registration, VAT, OSS and IOSS returns and fiscal representation in the countries you sell into, and checks your sales data against 250+ validation rules before each filing. OneTax then pays every tax authority with one bulk payment in your chosen currency.

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