What is VAT (Ireland)?
Value Added Tax in Ireland is charged on most goods and services. The standard rate is 23%, with reduced rates of 13.5% (hospitality, construction services), 9% (newspapers, certain e-publications), and 4.8% (livestock). Zero-rated supplies include most food, children's clothing and books.
Current Rate (VAT periods are bi-monthly (Jan-Feb, Mar-Apr, etc.) with returns due by the 19th of the following month (23rd for ROS users).)
23% standard, 13.5% reduced, 9% second reduced, 4.8% livestock, 0% certain food/books
Example
An Irish consultancy charging €10,000 net for services charges €12,300 including VAT (23%). If they spent €1,230 on VAT-bearing inputs (€230 VAT), they remit €2,070 to Revenue (€2,300 - €230).
How VAT (Ireland) works in Ireland
Irish businesses must register for VAT once turnover exceeds €42,500 (services) or €85,000 (goods) in any 12-month period. Registration is voluntary below those thresholds and often beneficial for B2B sellers who can reclaim input VAT.
Returns are filed bi-monthly through ROS, with payment due the same day. Annual return of trading details (RTD) summarises the year's VAT activity by rate. Cross-border services to other EU businesses use the reverse charge mechanism — no Irish VAT is charged, the customer accounts for it in their own jurisdiction.
Related terms
Corporation Tax is the tax Irish-resident companies pay on their profits. Trading income is taxed at 12.5%, while non-trading (passive) income is taxed at 25%. Large multinationals within the OECD Pillar Two scope pay a minimum effective rate of 15%.
ROS is the Irish Revenue's online portal for tax filing and payment. All businesses must use ROS to file CT1, VAT, PAYE, RCT and other returns. Individuals use myAccount for personal taxes. Registration requires a digital ROS Cert installed in your browser.
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