VAT Calculator Ireland
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Our Calculator Makes It Easy
Many businesses in Ireland must charge value-added tax (VAT) on most of the products and services they sell. This can be a complex process, but it’s important to get it right. That is where our calculator allows you to easily add or remove VAT. We’ll also provide some tips for making the process as smooth as possible.
How To Use This Irish VAT Calculator?
- Enter the amount
- Select the VAT rate that applies (See further vat rate info below)
- And that’s it. You’ll now see the VAT amount and Gross. Whether you add or remove VAT, our calculator gives you both options.
Understanding The Current VAT Rates
The standard VAT rate in Ireland is
23% as of 2023.
What are the VAT rates for goods and services?
See our current and historical table of VAT rates below for goods and services;
| Date Introduced | Standard Rate | Reduced Rate | 2nd Reduced Rate | Livestock Rate | Flat-Rate (Farmers) |
|---|---|---|---|---|---|
| January 2022 | 23% | 13.5% | 9% | 4.8% | 5.5% |
| March 2021 | 23% | 13.5% | 9% | 4.8% | 5.6% |
| January 2021 | 21% | 13.5% | 9% | 4.8% | 5.6% |
What is Value Added Tax?
Value Added Tax (VAT) is a tax payable on sales of goods or services within the Member States of the EU. VAT is ultimately payable by the final consumer of the good or service.
When Was This Tax introduced?
VAT was introduced in Ireland on 1 November 1972.
How to calculate VAT Manually?
If you are adding VAT; then you need to multiply the price by (100 + VAT percentage). This is the price, including VAT (Gross value)
If you are removing VAT; then you need to divide the price by (100 + VAT percentage) and multiply by 100. This is the price without VAT (Net amount).
Historical Rates Ireland
source: tradingeconomics.com
What is VAT Worth To The Irish Economy?
According to gov.ie, Value Added tax was worth €15.4 billion in 2021. This figure was up €3 billion or 24% compared with 2020Â
Resources
How To Do Returns
Understand deadlines for vat returns, and how you can return your accounts yourself.
VAT Number Check
The most straightforward method is to use the VAT Information Exchange System (VIES) website, which the European Commission operates.
Facts About Value Added Tax
What was the first country to use VAT?
In 1954 France became the first country to adopt the VAT system. By the end of the twentieth century, it had been adopted throughout the European Union.
Fact Source: BritannicaÂ
What country has the highest VAT rate?
Hungary has the highest VAT rate (27 %), followed by Croatia, Denmark, and Sweden (all at 25%)
Fact Source: Taxfoundation
What purchases are exempt from VAT?
What purchases are exempt from VAT?
There is a 0% (Zero) VAT rate for all exports and necessities such as coffee, tea, bread, milk,, books, children’s clothes and shoes, some medical sale, animal feed etc.
Fact Source: Citizens Information
How much is VAT worth to the Irish economy?
In 2021 VAT was worth €15.4 billion to the Irish economy
Fact Source: Gov.ie
What year was the lowest VAT rate in the last 25 years?
In the last 25 years, 2001Â was the lowest with VAT rate of 20%.
Fact Source: Gov.ie
The Mechanics of VAT
VAT serves as a tax on consumer expenditure, hence, anyone who pays for goods
or services indirectly pays VAT. For a range of frequently consumed items such as clothing and fuel, the cost of VAT remains hidden as it is blended into the overall cost. Nonetheless, for some goods and services like electricity and professional services, the VAT amount and the rate it charges might be visible on your bill.
Each stage of a sale that adds value to an item will incur VAT.
The prevalent standard rate for VAT stands at 23%.
An Illustration
Let’s assume a manufacturer sells a television set to a wholesaler for €100 and imposes a VAT of 23% on the cost. This means the wholesaler shells out €123 for the television, out of which €23 (VAT) goes to the government.
The wholesaler, in turn, sells the television to a retailer for €200, adding a 23% VAT, making the total cost for the retailer €246. The wholesaler needs to remit the €46 VAT to the government but is eligible to reclaim the €23 VAT paid to the manufacturer. Thus, the wholesaler’s net payment to the government is €23.
Finally, when the retailer sells the television to an end-consumer, he too includes VAT in his selling price. Suppose he sells the television for €300, the VAT at 23% brings the selling price to €369 for the consumer. The retailer pays the VAT to the government but can deduct the €46 VAT paid to the wholesaler, leaving €23 for the government.
Ultimately, the government collects a 23% VAT based on the final price paid by the consumer (€69). The retailer, wholesaler, and manufacturer only pay the VAT they charge to the subsequent group in the sales chain.
Claiming back VAT
People not registered for VAT
Under certain circumstances, people can claim back VAT. People with disabilities can claim a VAT refund on certain aids and appliances.
People registered for VAT
A business person must register for VAT to fulfil tax obligations to the government. Registering for VAT also allows a business to reclaim VAT on purchases.
Residential Property
In the case of residential property:
- If you buy a new house from a builder or developer, you will be charged VAT at 13.5%
- For the purchase or sale of an ‘old’ or existing property, VAT is not applicable
- If you buy a site for a house from a landowner, you are not required to pay VAT unless you have an agreement with both the landowner and a builder to develop the site
If a new property is resold within 5 years of its completion, it is taxable for VAT if it has not been lived in for at least 2 years. Revenue provides detailed information about when a property is taxable for VAT (pdf).
For landlords, VAT cannot be levied on rent from residential property.
If you paid VAT on your house (because you bought it from a developer or builder) you only have to pay stamp duty on the base price of the house – before the VAT was added. So, for example, if you paid €227,000 (including VAT) for your new house, this is made up of the base price of €200,000 plus 13.5% VAT (€27,000) and you only pay stamp duty on the base price of €200,000.
Imports
This section pertains solely to consumers buying goods for personal use.
As a rule, one must pay VAT and import duty on any goods brought into Ireland from outside the EU. This includes goods bought online or via mail order. The VAT rate applied is the same as that for similar goods within Ireland.
Inside the EU, VAT is usually paid in the state where the goods were purchased, though there are exceptions.
Online Purchases
From Outside the EU
Starting 1 July 2021, VAT exemptions for goods valued up to €22 from outside the EU ceased to exist. All goods coming into Ireland from non-EU countries are now liable to VAT.
Certain online retailers are registered with the Import One Stop Shop (IOSS), allowing VAT to be included in the price you pay for the goods. Prior to making a purchase, it is advisable to verify whether the listed price includes tax and duty costs.
Customs duty is charged on goods with a value over €150.
Excise Duty is imposed on alcohol and tobacco products, which is separate from Customs Duty.
Revenue provides a guide to buying goods from outside the EU for personal use including information on how to calculate what you owe in duties and taxes.
From another EU Member State
If you buy goods online or via mail from another EU member state you may pay VAT at the rate that applies in Ireland. However, if the supplier has not exceeded the Distance Sales Threshold in Ireland then you will pay VAT at the rate that would apply in the country of purchase. You will usually be informed of the VAT payable at checkout.
Excisable products (e.g., alcohol, tobacco, and oil) purchased within the EU via the internet or by mail are subject to excise duty and VAT.
Travelling with your Purchases
From outside the EU
You can buy and bring your goods (other than tobacco and alcohol products) from a non-EU State into Ireland without paying any taxes, if their value is no more than:
€430 if you are aged over 15 €215 if you are aged under 15 You will have to pay VAT and customs duty on anything over these amounts.
If you bring in an item worth more than the €430 or €215 limit, you must pay import charges on the full value. Revenue provides information if you are arriving in Ireland from countries outside the EU.
From another EU Member State
There are no limits on what you can buy and take with you when you travel between EU countries, as long as the products you bought are for your own personal use and not for resale.
VAT is included in the price of the product in the EU member state and no further payment of taxes including VAT can be charged here in Ireland. The exception to this is where you are importing a vehicle from the EU.
Special rules apply in the case of goods subject to excise duty, such as alcohol and tobacco products. Revenue has published information if you are arriving in Ireland from the EU.
Gifts from outside the EU
You can receive a gift from outside the EU up to the value of €45 without paying import charges. However, the gift must be correctly declared. More information is available in Revenue’s guide to relief available for imports from non-EU countries.