How vat / sales tax works in Ireland
Irish VAT defaults to 23% on most goods and services, with registered traders charging output VAT, reclaiming input VAT, and filing bi-monthly VAT3 returns with Revenue.
A 13.5% reduced rate covers labour-intensive services, construction, and hospitality inputs, a 9% second reduced rate covers restaurants, hotels, catering, and energy, and a 4.8% livestock rate applies to farming.
Registration is compulsory past EUR 85,000 for goods or EUR 42,500 for services in twelve months, with distance-selling and non-established-trader rules pulling cross-border sellers in sooner.
Tax rates at a glance
- Standard VAT
- 23%
- Reduced VAT
- 13.5%
- Second reduced VAT
- 9%
- Livestock rate
- 4.8%
- Zero-rated supplies
- 0%
- Goods threshold
- EUR 85,000
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
E-commerce sellersFreelancersFoundersHospitality operatorsExpats
Watch out for
- Mixed supplies trigger the two-thirds rule: when goods cost more than two-thirds of the total price, the whole supply can be dragged up to the goods rate.
- The 9% hospitality and energy band has moved before and stays politically live, so restaurant and hotel pricing should survive a rate-change scenario.
- Zero-rated versus exempt repeats the EU-wide trap: food and books at 0% preserve input claims while exempt finance and medical supplies restrict them.
- Post-Brexit GB trade needs import VAT, postponed accounting, and EORI discipline that intra-EU movements never required.
Frequently asked questions
What is the standard VAT rate in Ireland?
The standard Irish VAT rate is 23% in 2026. Reduced rates of 13.5% and 9% plus a 4.8% livestock rate cover defined services, hospitality, energy, and farming.
When must an Irish business register for VAT?
Past EUR 85,000 of goods turnover or EUR 42,500 of services turnover in twelve months. Voluntary registration below that suits input-heavy businesses.
What is the 9% Irish VAT rate for?
Restaurants, catering, hotels, hairdressing, and domestic energy sit at 9% under current Revenue tables. Labour-heavy construction and repair services generally stay at 13.5%.