VAT in Ireland 2026
The standard VAT rate in Ireland is 23%, but the tax location and transaction model determine whether Irish tax is payable. If you store, import, or sell locally, check your foreign VAT registration and subsequent foreign VAT returns.
This guide covers rates, reverse charge, import, OSS/IOSS, VIES, Intrastat, and VAT refunds. We discuss the procedure for obtaining an IE number and VAT3 fields separately.
VAT in Ireland – what to check before your first invoice?
Irish VAT applies to supplies of goods and services taxed in the Republic of Ireland, as well as the importation of goods into the country. The customer's address alone does not determine tax liability.
Basic rate
It is used when the regulations do not provide for 13.5%, 9%, 4.8%, 0% or an exemption.
VAT number
The IE prefix identifies the VAT number. It does not replace the EORI number needed for customs operations.
Online billing
The Revenue Online Service is used, among other things, to submit VAT3 and handle many tax obligations.
Flow first
Determine the goods route, warehouse, importer, customer status and VAT settlement entity.
The Republic of Ireland is not Northern Ireland
Dublin, Cork, and Galway are in the Republic of Ireland, which uses Irish VAT and the IE prefix. Belfast is in Northern Ireland, which is part of the United Kingdom. Goods trading with the EU may use the XI prefix; it does not apply to services. So, before booking, check the exact delivery address, not just the word "Ireland.".
VAT rates in Ireland in 2026
In 2026, the rates will be 23%, 13.5%, 9%, 4.8%, and 0%. Revenue publishes the current VAT rates in Ireland and a search engine for specific goods and services.
| Rate | Application in brief | What to watch out for |
|---|---|---|
| 23%basic | Most goods and services are exempt from preference, including many professional services, electronics, and industrial goods. | Foreign company status does not reduce the local delivery rate. |
| 13,5%reduced | This includes hotel accommodation, selected construction, repair, cleaning and maintenance services, some fuels, and short-term rentals. | For packages that include accommodation, meals and drinks, it may be necessary to split the base. |
| 9%second reduced | These include electricity, certain gas, periodicals, commercial sports facilities, and selected new residential buildings. From July 1, 2026, certain catering and hairdressing services will also be covered. | The preference does not automatically cover every element of the composite benefit. |
| 4,8%special | Certain farm animals, horses intended for food production or agricultural activities, and greyhounds. | It does not apply to all animals or every horse transaction. |
| 0%zero rate | These include eligible exports, intra-EU deliveries, certain foods, books, medicines, children's products and selected solar panels. | 0% conditions and documents must be proven; 0% is not an exemption. |
Change from July 1, 2026
From this date, the 9% rate applies to restaurant and catering services, hot takeaway food, hot tea and coffee, and hairdressing services. Until June 30, 2026, these services were generally subject to the 13.5% rate. Revenue excludes alcohol, soft drinks, and bottled water from its preferential treatment, so different rates may appear on the same bill.
Taxenlight explains: 0% and exemption
At a 0% rate, the transaction remains taxable, but the output VAT is zero, and the right to deduct can be retained. With an exemption, the right to deduct is generally limited. In practice, incorrectly identifying these categories can damage the invoice, declaration, and evidence trail.
When is a transaction subject to Irish VAT?
The Revenue's place of supply rules indicate, among other things, that goods without transport are taxed where they are delivered, and goods with installation are taxed where they are installed. For services, a separate distinction must be made between B2B, B2C, and exceptions.
Goods or services?
The proper rule of place of taxation begins with the qualification of the benefit.
Where is the goods?
Check the warehouse, the beginning and end of transport and the installation site.
Who's buying?
Determine whether the customer is a taxpayer, consumer or exempt entity.
Who is responsible?
Assess the supplier, buyer, importer, platform and possible reverse charge.
What is the rate?
Only after these arrangements should you choose your rate, invoice and reporting.
B2B goods, services and B2C services
Goods stored in an Irish warehouse for local sale are generally subject to Irish VAT. For most B2B services, the place of taxation is the buyer's country, and the Irish entrepreneur settles the tax through self-accounting. For B2C services, the starting point is the service provider's country, but exceptions include real estate, event admission, restaurants and catering, transport, and short-term transport rentals. See the general rules for Revenue services.
Typical VAT scenarios in Ireland
This table is intended for initial diagnosis. The final result depends on the contracts, Incoterms, the status of the parties, transportation, and any simplifications.
| Scenario | Possible VAT effect | What to check before transaction |
|---|---|---|
| Warehouse in Irelandand fulfillment | The movement of your own goods may constitute an intra-Community acquisition, and the subsequent sale may constitute a local supply. | Stock ownership, timing of movement, location, call-off stock and resale model. |
| Delivery from the EU to IEB2B | Intra-Community delivery possible in the country of dispatch and purchase in Ireland. | Valid IE number, transport proof, invoice compliance and VIES. |
| Standard B2B servicefor an Irish company | Most often, VAT is settled by the Irish buyer via reverse charge. | The status of the buyer, its permanent place of business and no exception to the general rule. |
| Import from outside the EUon your own behalf | The importer is responsible for customs clearance and import VAT; he may need VAT IE and EORI. | Importer of record, EORI, customs value, deduction and postponed accounting. |
| B2C sales from another EU countryto Ireland | Once the VAT conditions are met, your consumption can be settled through Union OSS. | The €10,000 threshold, country of consumption, Irish rate and OSS scope. |
| Goods with installationin Ireland | The place of delivery is in Ireland; reverse charge may apply in certain relationships. | Recipient status, scope of installation, VAT liability and acceptance documents. |
From our experience Taxenlight
We most often resolve situations where a company started with a rate or invoice and only later recreated the flow of goods. An additional warehouse, a different importer in the declaration, or a sale from a local inventory can completely change VAT liability.
When to check VAT registration in Ireland?
Do this before your first transaction if your company is to be an importer, hold inventory in Ireland, sell locally, install goods at a customer's premises, or perform a service that the recipient will not settle via reverse charge.
For many non-resident activities, the obligation may arise regardless of the level of turnover. The thresholds of €42,500 for services and €85,000 for goods should not be considered as automatic protection for a foreign company. From 2025, an additional assessment must be made as to whether the conditions of the EU small business exemption scheme are met.
Separate rules apply to a common threshold of €10,000 for certain cross-border B2C sales within the EU. Proper analysis distinguishes the national registration threshold from the place of taxation rule and the scope of the OSS.
Signals for urgent analysis
- own goods are sent to a warehouse in Ireland;
- the company is indicated as the importer;
- sales begin and end in Ireland;
- the goods are installed or assembled locally;
- the recipient is a consumer or an entity without the right to self-accounting.
Check out the guide: VAT Registration in Ireland
Here you will find forms, required documents, rules for obtaining an IE number, information about the representative and a step-by-step procedure.
Reverse charge in Ireland in brief
Reverse charge, also known as self-accounting by the Revenue, transfers the responsibility for settling VAT from the seller to the buyer. It's a settlement mechanism, not a 0% rate.
The most common case
A standard B2B service from a foreign supplier whose place of taxation is Ireland is usually billed by the Irish buyer.
Other uses
The mechanism may occur, among others, with selected installed goods, construction services and certain real estate transactions.
What doesn't it do?
It does not remove the obligation arising from imports in one's own name, one's own stock or other local supplies.
In practice we see two mistakes
The first is entering "0% VAT" instead of the correct reverse charge indication. The second is the assumption that reverse charge exempts the company from analyzing all other transactions. Revenue identifies specific cases of reverse charge and self-accounting; each activity must be assessed separately.
Importing goods and import VAT in Ireland
The most important question is: who is listed as the importer on the customs declaration? An agent can handle the clearance process, but they don't automatically assume the deduction rights or obligations of an importer.
Importer and EORI
A company importing on its own behalf should check the VAT registration and EORI number before customs clearance. The VAT IE number does not replace the EORI.
Base and rate
VAT is generally charged at the rate for similar goods in Ireland on the customs value plus duty and certain additional costs.
Documents for deduction
Consistent data in the declaration, records, AIS and VAT3 as well as the connection between the import and the activity giving the right to deduction are required.
Postponed accounting
A trader registered for VAT, customs, and excise duties can settle import VAT in VAT3 instead of paying it at customs. The tax can also be deducted, but only under the standard deduction rules. Revenue confirms the terms of postponed accounting and emphasizes that this option is not mandatory.
VAT returns in Ireland - a quick map of obligations
The basic declaration is VAT3, filed electronically via the ROS. The standard settlement period covers two months, and active taxpayers also submit a zero-turnover declaration for the period without turnover.
Tax and profit
The declaration includes the VAT due, the deductible tax and the amount to be paid or refunded.
Deadline
The statutory deadline is the 19th day after the period; for online declarations and payments via ROS it is generally extended to the 23rd day.
Additional arrangements
In addition to VAT3, there may be annual RTD, VIES, Intrastat, and in addition to VAT3, also OSS or IOSS.
VAT3 and calendar fields are in a separate guide
Thanks to this, this page explains the VAT rules, and the settlement page answers the intention of "how and when to submit the declaration".
VIES, Intrastat, OSS and IOSS
VAT3 doesn't always complete reporting. The scope of additional obligations depends on EU transactions, the value of goods flows, and the chosen e-commerce procedure.
VIES
Reports specific supplies of goods and services to taxpayers in other EU countries. Data must be consistent with VAT numbers, invoices, and VAT3.
Intrastat
It concerns statistical reporting of the flow of goods after the relevant threshold has been exceeded. It is not a VAT declaration and does not replace VIES.
Union OSS
It simplifies the settlement of certain cross-border B2C sales within the EU through a single quarterly declaration. Revenue describes the scope of the Union OSS.
IOSS
Covers certain goods sold B2C from outside the EU in shipments with an intrinsic value of up to €150, excluding excise goods. Declaration is monthly.
Taxenlight advises: don't use OSS as shorthand
OSS does not cover the simple sale of your own goods from an Irish warehouse to an Irish consumer, imports on your own behalf, or the mere movement of stock. IOSS is also not an "OSS for every import" – it requires meeting a €150 limit and other conditions. If you handle consumer sales in multiple countries, separate local, intra-EU distance, and import sales in your ERP system.
VAT Deduction and Refund in Ireland
The way to recover the tax depends primarily on whether the company should be registered in Ireland and where it is based.
Taxpayer with IE number
Qualified tax is deductible in VAT3 if it has a correct invoice or customs document, the connection of the expense with the taxable activity and reliable records.
A company from another EU country
If you are not required to register in Ireland, you can submit an electronic application through the government portal of your country of residence. Revenue will assess your eligibility for a refund.
Non-EU entity
May use the VAT 60OEC procedure after meeting conditions, including the principle of reciprocity and documentation requirements.
First, check if the returns procedure is correct
The unregistered business procedure cannot replace local registration. If a trader imports on their own behalf, holds inventory, or sells locally, an IE number and VAT deduction may be the correct route. Revenue describes separate refunds for EU and non-EU.
The most common VAT errors in Ireland
Most problems begin before the first invoice is issued – at the stage of an incorrect transaction model or incorrect logistics data.
Location and registration
- the merger of the Republic of Ireland with Northern Ireland;
- application of the domestic threshold to a non-resident without analysis;
- omitting your own stock or import.
Rate and invoice
- selecting a rate by product name;
- reverse charge marked as 0%;
- 0% for EU delivery without number and proof of transport.
Reporting
- assuming that OSS includes sales from a local warehouse;
- lack of compliance of VAT3, VIES, Intrastat and import data;
- no zero declaration.
Taxenlight advises: draw up a transaction before the first invoice
Record the origin and destination countries, warehouse location, customer status, importer status, VAT numbers, Incoterms, and tax payer. Assign an invoice, proof of transport, customs declaration, and report to each stage. This map quickly shows whether reverse charge or OSS is sufficient, or whether you need an Irish VAT number and a fixed settlement process.
VAT in Ireland 2026 – key conclusions
The rate is the end of the analysis, not the beginning. For a foreign company, the outcome is most often determined by the location of the goods, the importer, the customer's status, and the applicable place of taxation rule.
Establish flow
Check the product or service, route, warehouse, importer and recipient.
Select a biller
Assess local VAT, reverse charge, OSS/IOSS and need for an IE number.
Reconcile reports
Invoices, VAT3, VIES, Intrastat and import documents must tell the same story.
VAT in Ireland - Questions and Answers
The standard rate is 23%. Rates of 13.5%, 9%, 4.8%, and 0% also apply. The appropriate rate depends on the actual nature of the good or service. From July 1, 2026, the 9% rate applies to certain catering services, hot takeaways, and hairdressing services, among others.
No. First, the place of taxation and the entity responsible for settlement are determined. For many standard B2B services, the Irish buyer settles the tax through reverse charge.
Yes. The movement of your own goods can constitute an intra-Community acquisition, and the subsequent sale from the warehouse can constitute a local supply. A possible simplification of call-off stock should be investigated separately.
No. Reverse charge transfers the obligation to settle VAT to the buyer. The 0% rate is a separate tax rate and requires meeting certain conditions.
For covered transactions only. OSS does not replace registration resulting from the local sale of your own goods from an Irish warehouse, importing in your own name, or moving your own stock.
As a rule, the importer is indicated in the customs declaration. An agent may submit a declaration, but this does not automatically entitle them to deduct import VAT.
The standard frequency is bimonthly. Revenue may allow a different frequency, e.g., monthly for taxpayers who consistently file returns, or four- or six-monthly for taxpayers with lower annual liabilities.
No. The Republic of Ireland is an EU country and uses the IE prefix. Northern Ireland is part of the United Kingdom and may use the XI prefix for trade in goods with the EU, except for services.
This text is for informational purposes only and does not replace an individual tax assessment. For VAT in Ireland, it's important to check taxpayer status, place of taxation, transaction model, reverse charge, VAT import, OSS/IOSS, right of deduction, and current reporting obligations.
