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.

Have a look at our VAT rates overview for Ireland here. Also, check our VAT rates in Europe overview here.


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