search engine by freefind advanced
Rates of VAT

There are currently four different rates of VAT in Ireland.

Standard rate of VAT 23%

All goods and services other than those specified as being exempt, liable at the zero, 4.8% or 13.5% rates.

Reduced rate of VAT - 13.5%:

Goods and services which attract VAT at 13.5% include certain fuels, building services, newspapers, magazines and periodicals, repair, cleaning and maintenance services generally, holiday accommodation, certain photographic supplies, restaurant services, and provision of commercial sporting facilities.

Reduced rate of VAT - 9%:

Second reduced VAT rate of 9%
The supplies of goods and services at the new VAT rate include:

  • Catering and restaurant supplies, including vending machines and take-away food (exc alcohol & soft drinks sold as part of the meal)
  • Hotel lettings, including guesthouses, caravan parks, camping sites etc
  • Cinemas, theatres, certain musical performances, museums, art gallery exhibitions
  • Taking part in sporting activities incl green fees charged for golf &subs charged by non-member-owned golf clubs
  • Hairdressing services

Agricultural rate of VAT – 4.8%

The sale of livestock, greyhounds and the hire of horses are liable. This rate does not apply to non VAT registered farmers who can avail of the 5.2% flat rate additions.

Nil rate of VAT – 0%:

Goods and services which attract the zero rate of VAT include exports, intra-Community supplies of goods to VAT-registered persons in other EU Member States, certain food and drink, oral medicine, certain books and booklets, certain animal feeding stuffs, certain fertilisers, seeds and plants used to produce food, clothing and footwear appropriate to children under 11 years of age.

Exempt from VAT:

Exempt goods and services consist principally of financial, medical and educational activities as well as admissions to and promotion of certain live theatrical and musical performances.

Exempt Versus Zero Rated

There is a major difference between zero rated supplies and exempt supplies. The difference is that taxable persons making zero rated supplies are entitled to a refund of VAT on business purchases whereas suppliers of exempt supplies are not entitled to a refund of VAT on business purchases.