Ireland VAT Calculator

Irish VAT Rates Explained

Value Added Tax (VAT) is a consumption tax applied to most goods and services in Ireland and administered by Revenue. Ireland operates five VAT rates in 2026. The standard rate of 23% applies to most goods and services, including electronics, adult clothing, alcohol, furniture, petrol, and professional services. The reduced rate of 13.5% applies to building services, fuel for home heating, hairdressing, cinema tickets, and certain repair services. The second reduced rate of 9% currently applies to tourism and hospitality (hotel accommodation, restaurant meals), newspapers, and ebooks. The livestock rate of 4.8% applies specifically to the supply of live cattle, sheep, pigs, goats, deer and horses. Zero-rated items (0% VAT) include most foods, oral medicines, children's clothing and footwear, and books.

Which Rate Applies

Choosing the correct VAT rate depends on what is being sold, not who is selling it. A restaurant meal is charged at 9% whether served in a five-star hotel or a small café, while a bottle of wine consumed with that meal is charged at 23% because alcohol is always at the standard rate. Takeaway hot food is usually 13.5% but cold takeaway food can be zero-rated. Building services applied to residential property fall at 13.5%, but the sale of new-build property itself is 13.5%. Digital services supplied to Irish consumers are taxed at 23%. When in doubt, check Revenue's eBrief and VAT rate database — misclassifying supplies is one of the most common triggers for a Revenue audit.

VAT Registration Threshold

Traders must register for VAT once their turnover crosses the registration threshold. From 1 January 2025 these thresholds are €85,000 for the supply of goods and €42,500 for the supply of services over any 12-month period. If you supply both, the goods threshold applies only where 90% or more of turnover comes from goods. Businesses below the threshold can register voluntarily — this is often worthwhile if your customers are VAT-registered themselves, because it lets you reclaim VAT on purchases without adding cost to your B2B customers. Non-established traders supplying into Ireland must register from the first euro of sales, and e-commerce sellers into the EU must consider the €10,000 pan-EU distance selling threshold.

Reclaiming VAT

Registered traders reclaim VAT on business purchases (input VAT) against the VAT they charge on sales (output VAT), paying only the difference to Revenue on each bi-monthly VAT3 return. Input VAT can be reclaimed on stock, equipment, professional fees and most overheads — but not on passenger cars, entertainment, or petrol (diesel is reclaimable). To reclaim, you need a valid VAT invoice showing the supplier's VAT number, the rate applied, and the VAT amount. Keep invoices for six years. If input VAT exceeds output VAT in a period (common for exporters and businesses buying large assets), Revenue refunds the difference. Late VAT returns trigger interest at 0.0274% per day plus a surcharge.