Ireland VAT calculator

How vat in Ireland is calculated

Ireland has five rate bands, more than any other country in this catalog, and the one most often misunderstood is the zero rate. It is a genuine rate, not an exemption: Revenue applies it to certain food and drink, oral medicine, children’s clothing and footwear, books and newspapers, and solar panels on homes — alongside exports and intra-Community supplies. Because those sales are taxable at nil rather than exempt, they count toward your registration threshold and you keep the right to reclaim input tax.

The registration threshold is the other thing Ireland does differently from everywhere else here: it depends on *what* you supply. €85,000 if you supply goods, €42,500 if you supply services only. A business doing both is held to the lower figure, which catches people out who think of themselves as a goods business with a little consultancy on the side.

The remaining rates are 13.5% on hotel lettings, cinema and theatre admissions and building services, 9% as the second reduced rate, and 4.8% on livestock. Farmers may also be entitled to a 4.5% flat-rate addition, which is a compensation mechanism rather than a rate you charge, so it is not in the selector.