There are 6 applicable VAT tariffs in Ireland:
Standard 23%. All goods and services that do not fall into the reduced rate categories are charged at this rate. They include alcohol, audio-visual equipment, car parts and accessories, CDs, computers, consultancy services, cosmetics, detergents, diesel, fridges, furniture and furnishings, hardware, jewellery, lawnmowers, machinery, office equipment, pet food, petrol, paper, tobacco, toys, tools, bottled water, washing machines and medicines (non-oral). It was announced in Budget 2023 that non-oral medicines for Hormone Replacement Therapy (HRT) and nicotine replacement therapy would be 0% from 1 January 2023.
Reduced 13.5%. for items including coal, heating oil, vet fees, building and building services, agricultural contracting services, short-term car hire, cleaning and maintenance services.
Reduced Rate 9% Gas and electricity were reduced to this rate from 1 May 2022. It was extended to 28 February 2023 by Budget 2023 and further extended until 31 October 2023, under the cost of living supports announced in February 2023.
The VAT rate for the hospitality and tourism sector also decreased from 13.5% to 9%, for the period 1 November 2020 to 28 February 2023. The reduced rate was extended until 31 August 2023 under the cost of living supports announced in February 2023. This applies to various entertainment services such as admission to cinemas, theatres, museums, fairgrounds and amusement parks. VAT at 9% also applies to hairdressing and certain printed materials such as brochures, maps and programmes.
Reduced 4.8% specifically for agriculture. It applies to livestock (excluding chickens), greyhounds and the hire of horses.
Zero 0% includes all exports, tea, coffee, milk, bread, books, children’s clothes and shoes, vegetable seeds and fruit trees, fertilisers, large animal feed, oral medicine for humans and animals, disability aids such as wheelchairs, crutches and hearing aids. It was announced in Budget 2023that the 0% rate will also be extended to newspapers including digital editions (currently 9%), defibrillators and period products from 1 January 2023.
VAT Exempt You do not have to pay any VAT on financial, medical or educational services. You may also not pay VAT for live theatrical and musical performances (except those where food or drink is served during all or part of the performance).
Difference between exemption and zero-rating
If a business person supplies taxable goods or services, including zero-rated ones, they can claim VAT back from the government on their taxable business purchases. If they only supply exempt goods or services, they cannot reclaim VAT.
Difference between exempt and zero-rating
If a business person supplies taxable goods or services, including zero-rated ones, they can claim VAT back from the government on their taxable business purchases. If they only supply exempt goods or services, they cannot reclaim VAT.
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