Business
VAT in Ireland: rates, registration and returns
Last updated 16 October 2026
Register once sales pass €42,500 for services or €85,000 for goods. Charge 23%, 13.5% or 9%, reclaim VAT on costs, file every two months.
VAT is charged by registered businesses on what they sell, and paid to Revenue after deducting the VAT they paid on their own business costs. The customer carries the cost in the end; the business collects it.
The rates
| Rate | Examples | |
|---|---|---|
| 23% | Standard rate | Everything not in another rate, including most professional services, electrical goods and alcohol |
| 13.5% | Reduced rate | Hotel and holiday lettings, certain building services, repairs, cleaning and maintenance, cinema and theatre tickets |
| 9% | Second reduced rate | Restaurant and hot take-away food, hairdressing, electricity and gas, periodicals, sports facilities, new apartments |
| 4.8% | Livestock rate | Livestock |
| 0% | Zero rate | Exports, most food, children's clothing and footwear, oral medicines, books |
Restaurants, hot take-away food and hairdressing moved from 13.5% to 9% on 1 July 2026. Some services, such as most financial, medical and educational services, are exempt: no VAT is charged, and VAT on related costs can't be reclaimed. See the 9% rate.
When to register
You must register once your turnover in a 12-month period is, or is likely to be, over €42,500 for services or €85,000 for goods. You can register below the limits, which lets you reclaim VAT on costs but means charging it to customers.
Returns and payment
Most businesses file a VAT 3 return every two months. It is due by the 19th of the following month, or the 23rd if filed and paid on ROS. A business selling €20,000 of standard-rated services in September and October 2026, with €4,000 of standard-rated costs:
| VAT charged on sales (T1) | €4,600.00 |
| VAT reclaimed on costs (T2) | (€920.00) |
| VAT to pay (T3) | €3,680.00 |
The return and payment are due by 23 November 2026 on ROS.
What you can't reclaim
Some VAT can't be reclaimed, even when used for the business. That covers food, drink, accommodation and entertainment for you or your staff, passenger cars (other than qualifying vehicles), and petrol. Nor can VAT on costs of exempt or non-business activities. Repayment claims must be made within four years.
Budget 2027
Budget 2027 applies 9% to non-oral respiratory vaccines for livestock and increases the flat-rate addition paid to unregistered farmers, once Finance Bill 2026 is enacted. Irish e-invoicing requirements are being phased in from 2028; see e-invoicing.
To add or remove VAT from a price, or to prepare a VAT 3, use the VAT calculator.
Work it out
Sources
- Revenue: Historical VAT rates (23%, 13.5%, 9%, 4.8%) (checked 25/10/2026)
- Revenue: Reduced rate of VAT (13.5%) (checked 25/10/2026)
- Revenue: Second reduced rate of VAT (9% on catering, hot take-away food and hairdressing from 1 July 2026) (checked 25/10/2026)
- Revenue: What are the VAT thresholds? (€42,500 services, €85,000 goods) (checked 25/10/2026)
- Revenue: How do you complete a VAT 3 return? (T1, T2, T3, T4, E1, E2, ES1, ES2, PA1) (checked 16/10/2026)
- Revenue: When VAT becomes payable (19th, or 23rd on ROS; bi-monthly periods) (checked 25/10/2026)
- Revenue: Who can reclaim VAT? (VAT you can never reclaim: food, drink, accommodation, entertainment, cars, petrol) (checked 16/10/2026)
- Department of Finance: Budget 2027 Tax Policy Changes (section 2.2: taxation of investments; chapter 9: Investment Account) (checked 25/10/2026)
General information, not tax advice. HeyPenny is not a tax agent.