VAT in Ireland: Who Needs to Register, Rates, and How to Reclaim VAT

What is Value Added Tax (VAT) in Ireland?

VAT (Value Added Tax) is a tax which is payable on the supply or importation of goods and the supply of services within the territory of the Member States of the European Union (EU).

If you're setting up a business in Ireland and need to register for VAT, check out our guide on how to register a company in Ireland and get a VAT number.

Who needs to register for VAT in Ireland?

A taxable person (individual, partnership or company) who supplies taxable goods or services in Ireland. VAT registration is obligatory when your turnover exceeds, or is likely to exceed, the VAT thresholds. The thresholds depend on your turnover in any continuous 12-month period. If the turnover is less than a threshold limit, you may elect to register for VAT.

The principal thresholds are as follows:

• €42,500 in the case of persons supplying services only.

• €85,000 for persons supplying goods.

• €10,000 for taxable persons making intra-Community distance sales of goods and cross-border TBE services into the State.

• €41,000 for persons making acquisitions from other EU Member States.

If you have set up a business but have yet to supply taxable goods or services, you may reclaim VAT on your start-up costs. However, to do so, you are required to register for VAT.

What is the rate of VAT in Ireland?

The standard VAT rate in Ireland is 23%. It applies to most goods and services.

The first reduced VAT rate (13.5%) applies to fuel, electricity, vet fees, construction, arts and theatre tickets, cleaning services, catering and restaurant services.

The second reduced VAT rate (9%) applies to newspapers, electronically supplied publications, sporting activities’ facilities.

Zero-rate: 0% : Irish zero-rated goods and services include all exports, some foodstuff, books, children’s clothes and shoes, disability aids.

Exempt: 0%

Understanding corporate taxation alongside VAT is important for businesses. Read our full guide on Ireland’s corporate tax rates and compliance requirements to stay informed.

What VAT can you reclaim?

You may reclaim the VAT charged on goods and services used for your taxable supplies.

Some examples include:

✅ Accounting and legal services

✅ Office equipment and supplies

✅ Marketing and advertising expenses

However, VAT cannot be reclaimed on:

🚫 Employee food, drink, and entertainment

🚫 Certain accommodation expenses

What is reverse charge VAT (self-accounting)?

There are a number of circumstances where reverse charge VAT applies, such as: 

Reverse charge VAT applies in specific cases, such as:

• Purchasing goods from another EU member state

• Receiving services from abroad

Under this mechanism, the recipient of the goods/services accounts for the VAT instead of the supplier. Proper VAT filing is crucial in these cases to avoid compliance issues.

What are the filing obligations and deadlines for VAT?

Businesses registered for VAT must file VAT3 returns every two months. The deadline is the 23rd of the month following the reporting period. For example:

📅 January-February 2025 VAT3 return → Due by March 23, 2025

To ensure timely VAT compliance, many businesses seek professional tax support.

How can Nathan Trust help?

Nathan Trust is a registered tax agent in Ireland, providing the following services: 

✔ VAT registration and obtaining a VAT number

✔ Determining the correct VAT rate for your business

✔ Advising on VAT reclaim eligibility

✔ Preparing and filing VAT3 returns

✔ Setting up VAT payments to Revenue

One of the key services offered by Nathan Trust is obtaining a VAT number in Ireland. This is essential for any business that wants to operate within the country's borders. Our team will assist you in completing all necessary steps and paperwork, ensuring that your VAT registration process runs smoothly.

In addition, we can advise on which VAT rate to charge for your goods or services, as well as what VAT can be reclaimed. Our goal is to help you maximize your savings while staying compliant with Irish tax laws.