Value Added Tax

Value Added Tax (VAT) is a tax charged on the sale of goods or services and is based on taxing the value added to the cost of the goods or service (margin) the tax rate (23%, 13.5%, 9%) and is usually included in the price of the goods or services.

Value Added Tax  is also charged on goods brought into Ireland from outside the European Union (EU).

Value Added Tax Rates

23% is the standard rate of VAT and is charged on all goods and services that do not fall into the reduced rate categories.

13.5% is a reduced rate of VAT and is charged on heating oil, building and building services, agricultural contracting services, short-term car hire, cleaning and maintenance services.

9% is a second reduced rate and is charged on Gas and electricity from May 1 st 2022 until 31 October 2023, under the cost of living supports announced in February 2023.

4.8% is a reduced rate of VAT which applies specifically to agriculture.

0% (Zero) VAT rating applies to all exports, cold food products, books, children’s clothes and shoes and to newspapers from 1 January 2023.

Exempt from VAT

This applies to financial, medical or educational services.

Business VAT returns

Businesses which sell goods and have an annual turnover exceeding €75,000 or provide services and have an annual turnover exceeding €37,500 are obliged to register for VAT and file periodic VAT returns.

A VAT return includes VAT on the business sales and VAT on purchases in the.VAT accounting period along with details of imports from other EU Member States and theoretical VAT at Point of Entry under the postponed Accounting system.

VAT is payable where VAT on sales exceeds VAT on purchases in a VAT accounting period. VAT is refundable where VAT on purchases exceeds VAT on sales in a VAT accounting period.

Contact us on 00353 (0)1 4578138 to advise you about all of your VAT obligations.