Ireland VAT Rates: 2025 Changes
Temporary reduced rate to gas and electricity to 9% is again extended until April 2025. Also, starting on 1 January 2025, VAT on heat pump installed is reduced to 9%.
VAT Rate Changes in Ireland: State Budget 2025
In Ireland's 2025 State Budget, the government has extended the temporary VAT reduction on gas and electricity to 9%, now running from October 31, 2024, to April 30, 2025. This reduced rate, initially introduced on May 1, 2022, has been extended several times, postponing the planned return to 13.5% on November 1, 2024.
Also, from 1 January 2025, the VAT charged for the supply and installation of a heat pump will be reduced from 23% to 9% .
Other temporary VAT reductions were previously introduced to help offset inflation impacts. For instance, VAT for tourism, hospitality, and hairdressing sectors returned to 13.5% in August 2023, ending the previous 9% rate.
Previous VAT rate changes in Ireland: 2024 and 2023
In recent years, Ireland has made several significant VAT rate adjustments.
2024 changes:
- VAT on audiobooks and e-books has been reduced from 9% to 0%.
- A 0% VAT rate now applies to the supply and installation of solar panels on school buildings, including related equipment under the same contract.
2023 changes:
- VAT on newspapers and news periodicals, including digital versions, was reduced to 0% from 9%.
- Certain health products, including period products, defibrillators, non-oral hormone replacement therapy, and non-oral nicotine therapy, now have a 0% VAT rate.
- The VAT rate for tourism and hospitality services was set permanently at 13.5%.
These reductions aim to support various sectors and essential services across the country.