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 2023 .
The standard rate of VAT.
The standard VAT rate in Ireland is 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, alcohol, tobacco, most household goods, and non-basic foodstuffs.
The standard rate of VAT is also applied to most professional services and telecommunications.
The 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. (This has been reduced to 9% temporarily until 31st Oct 2023)
- 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.
- Note – The rate of VAT for the supply and installation of solar panels for private dwellings was reduced to Zero from 1 May 2023
Temporary VAT Reduction to 9% for Hospitality Sector
The VAT rate for the tourism and hospitality sector was temporarily reduced from 13.5 per cent to 9 per cent on Nov 1st 2020. This was to help the sector during Covid and was announced in Budget 2021 .
The reduced 9% VAT rate was originally due to end in August 2022 but it was extended until 28 February 2023 and was extended again to August 31st 2023.
The VAT on the hospitality sector went back up to 13.5% on September 1st 2023.
The 9% reduced VAT rate on hospitality applied to: – catering and restaurant services (food not soft drinks or alcohol), tourist accommodation, cinemas, theatres, museums, historic houses, open farms, amusement parks, certain printed matter, and hairdressing.
Reduced VAT on Electricity and Gas :
There is a temporary reduction of VAT on electricity and gas which was originally due to end on Feb 28th 2023 . The VAT rate was reduced from 13.5 per cent to 9 per cent. This reduction is due to come to an end on 31st October 2023.
Third Tier VAT : – 9% 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.
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 sold in shops – including Tea, coffee, milk, bread, butter, cheese, milk , vegetables, meat, etc.
- Not food supplied from a vending machine or in a restaurant or other catering venues.
- 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
- Newspapers and electronically supplied publications
- Automatic external defibrillators
- Non Oral HRT
- non-oral nicotine replacements.
- The supply and installation of solar panels for private dwellings (since 1 May 2023)
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.
- banking services
- insurance services
- passenger transport (Bus / Taxi etc )
- funeral undertaking,
VAT on Imports
In Ireland – since July 1st 2021 – you can no longer buy goods from outside the EU without incurring any VAT charges. From July 1st 2021 – the €22 threshold was removed and VAT is charged on all imported goods.
More here about Import Duties in Ireland
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
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