VAT In Ireland
Value-added tax (VAT) is a consumption tax that is levied on the value added to goods and services as they move through the supply chain in Ireland. The standard rate of VAT in Ireland is 23%. However, there are a number of reduced rates and exemptions that apply to certain goods and services.
Some of the goods and services that are subject to VAT at the standard rate include:
- Food and drink, except for certain exempt items such as children’s food, certain medical foods, and certain hot food takeaways
- Clothing and footwear
- Household goods
- Electronic goods
- Motor vehicles
- Services such as hairdressing, repairs, and entertainment
Some of the goods and services that are subject to VAT at a reduced rate of 13.5% include:
- Hotel accommodation
- Food and drink sold for consumption on the premises of a restaurant, cafe
- Fuel
- Books, newspapers, and magazines
Some of the goods and services that are exempt from VAT include:
- Education and childcare
- Healthcare
- Financial services
- Public transport
- Certain food items such as unprocessed fruit and vegetables, milk, and bread
Businesses that are registered for VAT are required to account for VAT on their sales and purchases. They must also file VAT returns with the Revenue Commissioners on a quarterly basis.VAT is a major source of revenue for the Irish government. In 2022, VAT revenue amounted to €25.6 billion, which was 20.6% of total government revenue.The Irish government has a number of policies in place to help businesses comply with VAT regulations. For example, the Revenue Commissioners offer a number of online tools and resources to help businesses with VAT compliance. The Revenue Commissioners also offer a number of support services to businesses that are struggling to comply with VAT regulations.
History Of VAT Rate In Ireland In Recent Some Years
| DATE | Standard Rate% | Reduced Rate% |
|---|---|---|
| 1 September 2020 | 21% | 9% |
| 1 January 2021 | 21% | 9% |
| 1 March 2021 | 23% | 9% |
| 1 January 2022 | 23% | 9% |
| 1 January 2023 | 23% | 13.5% |
The Irish government reviews VAT rates on a regular basis to ensure that they are aligned with economic and social objectives.
