Value Added Tax (VAT) is a tax that is levied on the sale of most goods and services in Ireland.
Listed below are the current VAT rates in Ireland in 2021 .
The standard rate of VAT.
The standard VAT rate from March 1st 2021 is 23%
In September 2020, the standard rate of VAT was temporarily reduced to 21% . On March 1st 2021, the VAT rate went back up to 23% .
The standard 23% rate of VAT applies to a wide range of goods and services. These goods include motor vehicles, adult clothing, electrical goods, petrol, diesel, alcohol, tobacco, most household goods, non-basic foodstuffs. The standard rate of VAT is also applied to most professional services and telecommunications.
Standard rate of VAT is charged on all goods and services that do not fall into the reduced rate categories listed below. See below for details of reduced VAT rates.
Second Tier VAT : 13.5%
This 13.5% rate of VAT is usually charged on items including ….
- fuel (coal, heating oil, gas, electricity.
- vet fees,
- building and building services,
- agricultural contracting services,
- short-term car hire,
- cleaning and maintenance services.
- Catering and restaurant supplies, including vending machines and take-away food (excluding alcohol and soft drinks sold as part of the meal)
- Food Supplements
- Hotel lettings, including guesthouses, caravan parks, camping sites etc
- Short term accommodation.
- Cinemas, theatres, certain musical performances, museums, art gallery exhibitions
- Fairgrounds or amusement park services
- Hairdressing services.
Third Tier VAT : – 9% is a reduced rate of VAT for
- Facilities for taking part in sporting activities including green fees charged for golf and subscriptions charged by non-member-owned golf clubs.
- electronically supplied publications
VAT Reduction for Hospitatlity
The VAT rate for the tourism and hospitality sector was reduced from 13.5 per cent to 9 per cent on Nov 1st 2020. This was announced in Budget 2021 and the reduced rate will be in place until December 2021.
The 9% reduced VAT rate applies to: – catering and restaurant services, tourist accommodation, cinemas, theatres, museums, historic houses, open farms, amusement parks, certain printed matter, and hairdressing.
Fourth Tier VAT : 4.8%
This rate of VAT is specifically for agriculture. It applies to livestock (excluding chickens), greyhounds and the hire of horses.
Fifth Tier VAT : 0% (Zero) VAT
- Most food including Tea, coffee, milk, bread, butter, cheese, milk , vegetables, meat, etc.
- Not food supplied from a vending machine or in the course of catering.
- Not food supplements such as slimming , protein or sports supplements.
- Books, children’s clothes and children’s shoes,
- Oral medicine for humans and animals,
- Vegetable seeds and fruit trees, fertilisers, large animal feed,
- Disability aids such as wheelchairs, crutches and hearing aids.
- All exports,
Covid-19 VAT Reliefs
Revenue confirmed some VAT reliefs in 2020 to help combat COVID-19. These reliefs were originally due to expire on 31 July 2020, but were then extended to 30 April 2021. The temporary reliefs include:
- A zero-rate of VAT applying to personal protective equipment (PPE), thermometers, medical ventilators, hand sanitiser, and oxygen when supplied to the HSE, hospitals, nursing homes, care homes and GP practices for use in providing COVID-19-related healthcare services.
- Relief from import VAT and customs duties apply to the import of medical goods to combat COVID-19 by or on behalf of State organisations, disaster relief agencies and other organisations approved by Revenue, and which are provided free of charge for these purposes.
There is no VAT charged in Ireland on
- financial, medical or educational services.
- live theatrical and musical performances except those where food or drink is served during all or part of the performance.
In Ireland – you can buy goods from outside the EU up to a value of €22 without incurring any VAT charges. This includes the UK from Jan 1st 2021. Read more about VAT and Buying From the UK After Brexit
VAT rates in the UK
In the UK – the standard VAT rate is 20%
There is a 5% VAT in the UK rate on home energy , children’s car seats
There is Zero VAT on most food and children’s clothes in the UK