Welcome to VAT Calculator Ireland – Easily Calculate Irish VAT

IRELAND VAT CALCULATOR

In Ireland, Value-Added Tax (VAT) is applied to various goods and services at different rates.


✅Standard VAT Rate: 23% on most goods and services, including alcohol, computers, consultancy services, petrol, washing machines, and more.


✅ Reduced VAT Rate: 13.5% on services like heating oil, vet fees, building services, and agricultural contracting.


✅ Second Reduced VAT Rate: 9% on gas, electricity, printed materials, and heat pump installations (from 1 January 2025).


✅ Agricultural VAT Rate: 4.8% applies to livestock (excluding chickens), greyhounds, and the hire of horses.

✅Zero VAT Rate (0%): Applies to essential items like exports, children’s clothes, books, medical aids, and some medicines. Extended to include newspapers, period products, and eBook’s from 1 January 2024.

✅VAT-Exempt Services: Services like financial, medical, and educational services are exempt from VAT.

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Value-Added Tax (VAT) in Ireland : A Complete Guide to Irish VAT Rates, Calculations & Registration

Ireland VAT Rates

Value-added tax (VAT) was introduced in Ireland on January 1, 1972, as part of the country’s commitment to harmonizing its tax system with European Union regulations. Initially, Ireland adopted VAT as a means of streamlining tax collection and aligning with the EU’s common VAT system. Over the years, Ireland’s VAT system has evolved, with several rate changes, exemptions, and special provisions introduced to accommodate different sectors.

Today, Irish VAT framework is governed by the Revenue Commissioners (Revenue), the official tax authority, ensuring compliance with EU VAT laws while fostering efficient tax collection. The system now supports both businesses and consumers by maintaining transparency, efficiency, and alignment with EU regulations.

VAT Calculator

Value-added tax (VAT) is a tax applied to the sale of goods and services in Ireland. The standard VAT rate in Ireland is 23%, which is the default rate for most goods and services. However, several reduced VAT rates apply to specific categories of goods and services, with the aim to reduce the burden on essential or less costly products and services.

Ireland’s VAT Rates Explained

  • Standard VAT Rate: The primary VAT rate is 23%, which applies to most goods and services, unless they qualify for a reduced or zero rate. This includes a wide range of products, from electronics to consultancy services.
  • Reduced VAT Rates: Ireland also applies reduced rates of 13.5% and 9% for specific goods and services:
    • 13.5%: This applies to services like certain repair work, energy products, and some food and drink.
    • 9%: This rate applies to select sectors such as the provision of facilities for sports, magazines, and certain digital publications. As of January 2025, it will also apply to gas, electricity, and heat pump installations.
  • Zero-rate VAT: Certain goods and services are exempt from VAT or are subject to a 0% VAT rate. These include exports, children’s clothing, books, newspapers (printed and digital), and some medical products, as well as the installation of solar panels in homes.
  • VAT-Exempt Services: Certain services, such as those related to healthcare, education, and financial services, are exempt from VAT in Ireland.

VAT Registration Requirements for Businesses

As of January 2024, businesses in Ireland must register for VAT if their turnover exceeds certain thresholds:

  • EUR 42,500 for the supply of services
  • EUR 85,000 for the supply of goods

If a business’s turnover falls below these thresholds, it is not required to register for VAT. However, businesses can opt for voluntary registration, which may allow them to reclaim VAT on certain business-related purchases.

New VAT Reporting Requirements: CESOP

The CESOP Directive (Council Directive (EU) 2020/284) came into effect on January 1, 2024, introducing new VAT reporting obligations for payment service providers (PSPs) in the EU. This move aims to address VAT fraud and ensure proper tax collection on cross-border e-commerce transactions. PSPs must file reports on a quarterly basis regarding cross-border payments, with the first reporting period running until March 31, 2024.

VAT Exemption & Special Cases

Some goods and services, such as public interest activities and financial services, are exempt from VAT. Additionally, certain VAT reliefs apply to the importation of goods from outside the EU, including customs duty exemptions and carbon tax reliefs for businesses involved in specific sectors like energy production.

Understanding Customs Duties and Excise Taxes in Ireland

Ireland also applies customs duties to goods imported from non-EU countries. These duties are determined based on product classification, value, and origin. Special procedures, such as temporary admission and customs warehousing, allow for the partial or full suspension of duties under specific conditions.

In addition to VAT, excise duties are charged on products like fuel, alcohol, and tobacco, and these taxes can vary depending on product type and use.

Upcoming Changes: Carbon Border Adjustment Mechanism (CBAM)

The Carbon Border Adjustment Mechanism (CBAM), effective from October 2023, aims to address carbon leakage and promote sustainable production. It affects goods like cement, steel, and electricity, and will require companies to purchase CBAM certificates for their imports, depending on the carbon content of these goods.

Other Taxes and Reliefs

  • Excise Duties: Excise duties apply to mineral oils, tobacco, alcohol, and other goods consumed in Ireland.
  • Environmental Taxes: Ireland has introduced levies on plastic bags and a deposit return scheme for bottles and cans.
  • Payroll Taxes: The PAYE (Pay As You Earn) system is used to collect income tax, social charges, and other contributions from employees.
  • Stamp Duty: Taxes apply to transfers of property, with specific exemptions available for certain asset classes.

Use the Ireland VAT Calculator for Accurate Irish VAT Calculations

For businesses and consumers in Ireland, understanding VAT rates and regulations can be challenging. This Ireland VAT Calculator provides a straightforward way to calculate VAT amounts based on various rates, whether you’re calculating the VAT included in a price or the amount excluding VAT. Simply enter the amount and the applicable VAT rate to get an accurate result.

Conclusion

Navigating VAT regulations in Ireland can be complex, but with the help of resources like the Irish VAT Calculator, businesses and consumers can ensure they are calculating and complying with VAT requirements accurately. Whether you are a business owner looking to understand VAT registration or a consumer curious about VAT on your purchases, the VAT system in Ireland is designed to ensure fairness and efficiency.