VAT rates in Ireland: 23%, 13.5%, 9% and 0%
When to apply the standard and reduced rates, what zero-rated means, and how the VAT3 return works through ROS.
Ireland operates several VAT rates, and applying the right one to each line is the difference between a clean return and a correction. The standard rate of 23% applies by default to most goods and services. A reduced rate of 13.5% covers a defined set of supplies — for example certain fuels, building services and many labour-intensive activities — while a second reduced rate of 9% applies to particular categories. A range of supplies are zero-rated (0%), such as many foods, children's clothing and exports, which is different again from being exempt. VAT is reported to Revenue on the VAT3 return, filed and paid through ROS (the Revenue Online Service), and you charge VAT once you are registered and hold a VAT number. This page sets out the rates and the mechanics so each invoice is right first time.
- Standard rate 23% applies by default to most goods and services.
- Reduced rates: 13.5% for a defined set of supplies, and 9% for particular categories.
- Zero-rated (0%) supplies — many foods, children's clothing, exports — differ from exempt.
- VAT is filed and paid on the VAT3 return through Revenue's ROS once you hold a VAT number.
How it works
Start from the default. Unless a supply falls into a reduced, zero or exempt category set out in the VAT legislation, the standard rate of 23% applies. The reduced rates are exceptions for listed categories, not a free choice.
Apply 13.5% to its defined set. The 13.5% reduced rate covers specified supplies — for instance certain fuels, building and construction services and many labour-intensive services. Classify the supply correctly rather than assuming.
Apply 9% where it belongs. A second reduced rate of 9% applies to particular categories defined in legislation. Because the categories carried at 9% have shifted over time, confirm the current position for your sector.
Distinguish zero-rated from exempt. Zero-rated (0%) supplies — many foodstuffs, children's clothing and footwear, oral medicines and exports among them — carry VAT at 0% and still allow you to reclaim VAT on your costs. Exempt supplies carry no VAT but restrict that reclaim. The two are not interchangeable.
Report through ROS. Once registered, you charge VAT under your VAT number and file the VAT3 return for each period through the Revenue Online Service, paying or reclaiming the balance. A system that records the correct rate per line totals your VAT by rate automatically for the return.
Legal basis
- Value-Added Tax Consolidation Act 2010 (as amended) — rates and the VAT3 return.
- Revenue guidance on VAT rates and the classification of goods and services.
- Revenue Online Service (ROS) — VAT registration and periodic filing.
Frequently asked questions
What is the standard rate of VAT in Ireland?
The standard rate is 23% and it applies by default to most goods and services. If a supply is not specifically listed as carrying a reduced rate (13.5% or 9%), as zero-rated, or as exempt, then 23% applies.
What do the 13.5% and 9% reduced rates cover?
The 13.5% rate applies to a defined set of supplies — for example certain fuels, building and construction services and many labour-intensive services. The 9% rate applies to particular categories set out in legislation. Because these lists change, confirm the current rate for your specific supply with Revenue's guidance.
What is the difference between zero-rated and exempt?
Zero-rated supplies carry VAT at 0% but are still within the VAT system, so you can reclaim the VAT on your related costs. Exempt supplies carry no VAT and generally do not allow that reclaim. Examples of zero-rated supplies include many foods, children's clothing and exports.
How do I file VAT in Ireland?
VAT is reported on the VAT3 return for each taxable period and filed and paid through ROS, the Revenue Online Service. You must be registered for VAT and hold a VAT number to charge VAT. Software that captures the correct rate on each invoice line totals your VAT by rate for the return.
When do I need to register for VAT?
You register for VAT with Revenue when your turnover is likely to exceed the relevant registration threshold, or earlier if it suits your business. Once registered, you charge VAT at the correct rate, issue VAT invoices and file the VAT3 return through ROS. Thresholds differ for goods and services, so check the current figures.