1. VAT in Europe
3. VAT in Ireland

VAT in Ireland

What are VAT rates in Ireland?

The Irish VAT rates are the following:

• Standard rate: 23%
• Reduced rates: 9% and 13.5%

Ireland has opted for the reduced VAT rates on a number of items allowed by the VAT Directive.

Irish VAT Rates by goods and services

The standard VAT rate is 23%. The standard VAT rate generally applies for all goods and services for which no exemption, 0% or one of the reduced VAT rates is foreseen.

The first reduced VAT rate is 13.5%. This reduced rate applies to electricity, restaurants and catering, repair, cleaning and maintenance services, construction, among others.

In addition, there is a reduced VAT rate of 9%. This reduced rate applies, in general, to magazines and newspapers, both paper and electronic versions, entry to sporting events, hairdressing and tourism, among others.

Supplies and services at 0% are the standard supplies, such as exports or intra-Community supplies, as well as books, most foodstuff, oral medicines, children's clothing and footwear, among others.

Finally, some supplies are VAT exempt, such as postal services, financial and insurance transactions and immovable property rental.

For a precise confirmation of the VAT rate applicable to your product or service in Ireland, we recommend that you contact us. 

• Foodstuff
  0%. When supplied through catering services or vending machine, 9%.
• Water supplies
  23%
• Pharmaceutical products
  0% and 13.5%
• Medical equipment for disabled persons
  0%
• Children´s car seats
  23%
• Passenger transport
  23%
• Books
  0% applies for printed books, atlases, annuals, and children's colouring, picture and music books. From January 2024, 0% rate also applies to audiobooks and e-books.
• Books on other physical means of support
  0%
• Newspapers
  0%
• Periodicals
  9% applies to periodicals in printed form or electronically supplied.
• Admission to cultural services (theatre, etc) and amusement parks
  13.5%
• Pay TV / cable
   23%
• TV licenses
   23%
• Writers / composers
   23%
• Hotel Accommodation
  13.5% (check if the temporary VAT rate reduction applies) 
• Restaurant and catering services
  13.5% (check if the temporary VAT rate reduction applies) 
• Restaurants
  13.5%
• Medical and dental care
  0% and 13.5% 
• Repair of shoes and leather goods
  13.5%
• Repair of clothing and household linen
  13.5%
• Hairdressing
  13.5% (check if the temporary VAT rate reduction applies).

VAT Deduction Limits in Ireland

Input VAT is generally deductible as long as the goods or services are used for business purposes.

However, certain expenses are subject to special rules:

• Food, drink or other personal services to the taxpayer, agents or employees: input VAT is not deductible, unless they are part of a taxable supply of services.
• Food, drink, accommodation or other entertainment services, where it forms all or part of the cost of providing advertising services are not deductible.
• Hotel accommodation: input VAT is not generally deductible, unless this refers to qualifying accommodation in connection with attendance at a qualifying conference. A qualifying conference means the supply to a delegate of a service consisting of the letting of immovable goods or accommodation for a maximum period starting from the night prior to the date on which the qualifying conference commences and ending on the date on which the qualifying conference concludes. Input VAT is 100%, however, where a delegate attends for only part of the duration of the conference, entitlement to deduct the VAT incurred on the accommodation is reduced accordingly. 
• Business entertainment: input VAT is generally not deductible.
• Passenger motor vehicles: input VAT is generally not deductible, unless this refers to vehicles used as stock in trade. Also, if the expense refers to qualifying vehicles, input VAT deduction up to a 20% is allowed. A qualifying vehicle shall be a vehicle that is used for at least 60% business purposes (for a period of 2 years or more) and either i) was first registered for Vehicle Registration Tax (VRT) purposes on or after 1 January 2009 up to 31 December 2020 and has CO2 emissions of less than 156g/km (i.e. CO2 emission bands A, B and C) or ii) was first registered for Vehicle Registration Tax (VRT) purposes on or after 1 January 2021 and has CO2 emissions of less than 140g/km (i.e. CO2 emission bands A and B). 
• Attendance to qualifying conferences, fairs and exhibitions: input VAT is 100% deductible.
• Petrol: input VAT is not deductible.
• Cars, vans and trucks cost: the deduction of input VAT is restricted, particularly when it comes to vehicles for mixed use. We recommend check the guidelines in detail.

A valid and fully compliant VAT invoice must be issued for each expense on which VAT is deducted.

You may have a look at the official information from the Irish tax website on VAT deduction limits.

Statute of Limitations in Ireland

The statute of limitations is four years in Ireland. However, there is no time limit in cases of fraud or neglect.

The statute of limitations period determines the periods on which the tax authority can go back to review the information declared, and apply additional VAT assessments, penalties or interests.

The statute of limitations also determines the period a taxpayer can voluntarily correct any errors on past submissions, as well as deduct input VAT. This is four years. A valid VAT invoice or customs document is required to claim for input VAT refund.

Tax point rules in Ireland

The tax point is the time when VAT becomes due. VAT due should be distinguished from VAT payable. VAT is due when the tax point occurs. VAT is payable between the day after the end of the reporting period and the due date to submit and pay the VAT return.

• General rule: When the supply of goods or services is subject to the mandatory issuance of an invoice, then the tax point is by the of issuing the invoice. If you have not issued an invoice, then VAT is due by the time of the supply of the goods or services, or by the time a prepayments or advanced payment is received.
• Continuous supplies of utilities (gas, electricity and telecommunications): Tax point is considered to have occurred when the utility company issues the bill to the customer.
• Intra-Community acquisitions and supplies: Tax point occurs on the invoice date or the 15th day of the month following the month in which the invoice was issued, whichever occurs earlier.
• Import: Tax point occurs when the goods are imported according to the relevant import documents.

Find here official information about when VAT is due in Ireland. Find also here the rules for services taxable at the rate of the goods