Irish VAT rates and VAT compliance
Irish VAT rates
Ireland, like all EU member countries, follows the EU VAT Directive on VAT compliance. However, it is still free to set its own standard (upper) VAT rate. The only proviso is that it is above 15%. Suppliers of goods or services VAT registered in Ireland must charge the appropriate VAT rate, and collect the tax for onward payment to the Irish tax authorities through a VAT filling: see Irish VAT returns briefing.
The current rates are:
Ireland Covid-19 VAT rate changes
Ireland has announced a temporary Value Added Tax rate cut from 23% to 21%. The measure will come into place on 1 September 2020 until 28 February 2021.
|Supply||Old rate||New rate||Implementation date||End date|
|Standard rate||23%||21%||01 Sep 2020||28 Feb 2021|
|Tourism and hospitality services||13.5%||9%||01 Nov 2020||31 Dec 2021|
|Rate||Type||Which goods or services|
|23%||Standard||All other taxable goods and services|
|13.5%||Reduced||Certain foodstuffs; some pharmaceutical products; children's car seats; social housing; renovation and repair of private dwellings; cleaning in private households; some agricultural supplies; medical and dental care; collection of domestic waste; treatment of waste and waste water; minor repairs of bicycles, shoes and leather goods and household linen; supplies of natural gas, electricity and district heating; heating oil; firewood; construction work on new buildings; supply of immovable property; some social housing; routine cleaning of immovable property; health studio services; tourism services; photography services; services supplied by jockeys; works of art and antiques; short term hire of certain passenger vehicles; driving schools; services supplied by veterinary surgeons; cut flowers and plants for decorative use; concrete and concrete blocks; some books; admission to amusement parks; hotel accommodation; restaurant and catering (excluding beverages); hairdressing; take-away food; bars and cafes|
|9%||Reduced||Certain foodstuffs; newspapers and periodicals; admission to cultural events; use of sports facilities; hairdressing; e-books and digital publications|
|4.8%||Reduced||Livestock intended for use in the preparation of foodstuffs; some agricultural supplies|
|0%||Zero||Some foodstuffs; wax candles (undecorated); certain animal feed; certain fertilizers; some food supplies for food production; some medicines for human consumption; some medicines for veterinary use (excluding pets); certain feminine hygiene products; some medical equipment; clothing and footwear for children; intra-community and international transport; cut flowers and plants for food production; supplies of seeds and plants for use in food production; some books; childrens’ nappies|
Irish VAT Compliance
Foreign companies with an Irish VAT registration must comply with the VAT rules contained within the Irish VAT Act. This covers:
- Preparing invoices with the disclosure details outlined in the Irish VAT Act.
- Electronic invoices with proper signature, authenticity and agreement by the recipient.
- Maintenance of accounts and records, which must be held for at least 6 years.
- Correct invoicing of customers for goods or services in accordance with the Irish time of supply VAT rules.
- Processing of credit notes and other corrections.
- Use of approved foreign currency rates.
What is the tax point for Irish VAT?
The tax point (time of supply) rules in Ireland determine when the VAT is due. It is then payable to the tax authorities 10 days after the VAT reporting period end (monthly or quarterly).
For most goods, it is the time of delivery or passage of title. For services, it is the completion of the service.
Need help with your Irish VAT compliance?
Researching Irish VAT legislation is the first step to understanding your VAT compliance needs. Avalara has a range of solutions that can help your business depending on where and how you trade.
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