VAT in Ireland

VAT Rates in Ireland

Navigating the Irish VAT system doesn’t have to be complex. Whether you’re a local business or an international company, understanding the basics is essential. Here’s what you need to know:

What are the Irish VAT rates?

Ireland has several VAT rates that apply to different goods and services:

  • Standard Rate (23%): This rate applies to most goods and services.
  • Reduced Rate (13.5%): Catering services, fuel, and certain building services fall under this category.
  • Second Reduced Rate (9%): Tourism-related activities and printed materials like newspapers.
  • Zero Rate (0%): Items such as children’s clothing, books, and certain food products.
  • Livestock Rate (4.8%): Applies to livestock, greyhounds, and the hire of horses.

What do you need to apply for a VAT number in Ireland?

To apply for a VAT number in Ireland, you typically need to provide the following:

  1. Proof of Requirement:
    • Demonstrate that your business requires VAT registration.
    • This could include evidence of trading activity, such as invoices from Irish suppliers and customers.
  2. Trading Activity in Ireland:
    • Show that your business is actively engaged in economic activities within Ireland.
  3. Invoices from Irish Suppliers and Customers:
    • Provide documentation showing transactions with Irish suppliers and customers.
  4. Information on the Directors’ Residence:
    • Details about the residence of the company directors.
  5. Physical Office Address:
    • Specify the location of your business premises in Ireland.
  6. Supporting Documents:
    • Include relevant records such as contracts, business plans, and bank statements.

Remember that the specific requirements may vary based on your business type and circumstances. For more detailed guidance, you can visit the official Revenue website.

Reclaim VAT in Ireland

If your business is making taxable supplies of goods and services or is engaged in qualifying activities, you are eligible to reclaim VAT in Ireland.

To reclaim VAT, submit a claim through your VAT 3 return. However, keep in mind that you cannot reclaim VAT on goods or services used for making exempt supplies or for non-business activities.

What VAT can you reclaim?

  • You can reclaim VAT on eligible expenses related to your business operations.
  • Common examples include VAT paid on purchases of goods, services, and equipment used for business purposes.

What VAT Cannot Be Reclaimed?

  • You cannot reclaim VAT on items used for exempt supplies (e.g., financial services, healthcare, education).
  • Non-business expenses (personal use) are also excluded from VAT reclaims.

Reclaiming VAT from EU Member States:

If you’re a business established in Northern Ireland or have an establishment there, use the EU VAT refund system. This allows you to claim a refund of VAT incurred in other EU member states.