VAT is a general consumption tax that is charged directly on the sale of goods and services in Ireland.
The different VAT rates in Ireland are:
| Rate | Type | Goods and services |
|---|---|---|
| 23% | Standard | All other taxable goods and services |
| 13,5% | Reduced | Some foods, pharmaceutical products, children’s car seats, energy products and supplies, supply and development of immovable goods,… |
| 9% | Reduced | Some foods, newspapers, admission to cultural events, admission to sports facilities, hairdressing,… |
| 4,8% | Reduced | Livestock and agricultural supplies |
| 0% | Zero | Some foods, animal feed, medical equipment, children’s products,… |
The supply of some services, such as financial, medical and educational services, are exempt from VAT.
During the covid-19 pandemic (starting November 2020) the VAT rate applying to certain goods and services -mainly in the tourism and hospitality sector- decreased to 9%. The types of goods and services affected include supplies of certain food and beverages in restaurants, take-aways and other catering establishments, admissions to certain attractions including cinemas, museums and exhibitions, the provision of hotel, guesthouse and similar accommodation and hairdressing services. Since 1 September 2023, the VAT rate increased back to 13,5%.
Additionally, due to increasing energy costs for private households, the VAT rate on the supply of gas and heat has been reduced to 7% from 1 October 2022 until 31 March 2024.