Irish VAT rates explained (2026)
Value Added Tax (VAT) is a consumption tax charged on most goods and services in Ireland. Businesses registered for VAT collect it on behalf of Revenue and can reclaim VAT they pay on business purchases. As a consumer or sole trader, understanding VAT rates helps you price correctly and avoid unexpected costs.
The four Irish VAT rates
| Rate | Category | Common examples |
|---|---|---|
| 23% | Standard rate | Electronics, clothing, alcohol, cars, professional services, software |
| 13.5% | Reduced rate | Construction, home heating fuel, vet services, hairdressing, cleaning services, photography |
| 9% | Second reduced rate | Restaurants, cafes, hotels, B&Bs, newspapers, e-books, sporting facilities, cinemas |
| 0% | Zero rated | Unprocessed food, children's clothing & footwear, oral medicine, books, seeds & plants |
Adding VAT to a price
To add VAT to a net (ex-VAT) price, multiply by the VAT multiplier. For example, at 23%: multiply by 1.23. At 13.5%: multiply by 1.135. At 9%: multiply by 1.09.
Removing VAT from a total
To extract VAT from a VAT-inclusive price (sometimes called "reverse VAT" or "back-calculating"), divide the gross price by the VAT multiplier. For 23%: divide by 1.23. For 13.5%: divide by 1.135. For 9%: divide by 1.09. The VAT amount is the difference between the gross and net figures.
Do I need to register for VAT?
In Ireland, you must register for VAT if your annual turnover exceeds:
- €42,500 for services
- €85,000 for goods / product-based businesses
You can register voluntarily below these thresholds, which allows you to reclaim VAT on business purchases. This is often beneficial for businesses with high input costs.
VAT exempt vs zero-rated
Zero-rated goods are still subject to VAT law but at a 0% rate — businesses selling zero-rated goods can still reclaim input VAT. VAT-exempt goods and services (e.g. financial services, insurance, education) are outside the VAT system entirely, meaning businesses cannot reclaim input VAT on related costs.