VAT Calculator Ireland: Calculate VAT Instantly
Effortlessly add or subtract VAT with our reliable and up-to-date calculator. Ensure accuracy and compliance with current VAT rates in Ireland.
Last Updated May 7, 2024
Our Calculator Makes It Easy
Simplify your VAT calculations with our intuitive calculator. Designed for businesses in Ireland, our tool streamlines the process, ensuring accuracy and compliance.
How To Use Our VAT Calculator?
Using our Irish VAT Calculator is effortless. Just follow these simple steps:
- Enter the amount.
- Select the applicable VAT rate from the dropdown menu.
- Our calculator instantly displays the VAT amount and Gross, providing options for both adding and removing VAT.
Understanding The Current VAT Rates
Stay informed about VAT rates in Ireland. The standard VAT rate remains at 23% as of 2023.
What are the VAT rates for goods and services?
See the table below for current and historical VAT rates for different categories of 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 consumption tax levied on goods or services within the EU Member States. The end consumer ultimately bears it.
When Was This Tax introduced?
VAT was introduced in Ireland on 1 November 1972. VAT plays a crucial role in generating government revenue and is a key component of the tax system in Ireland and across the EU.
How to calculate VAT Manually?
For manual VAT calculation, follow these steps:
- Adding VAT: Multiply the price by (100 + VAT percentage) to get the price including VAT (Gross value).
- Removing VAT: Divide the price by (100 + VAT percentage) and multiply by 100 to obtain the price without VAT (Net amount).
Historical Rates Ireland
source: tradingeconomics.com
What is VAT Worth To The Irish Economy?
In 2021, Value Added Tax (VAT) contributed significantly to the Irish economy, amounting to €15.4 billion. This figure represents a remarkable increase of €3 billion, or 24%, compared to the previous year.
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: Britannica
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, 2001 was the lowest with VAT rate of 20%.
Fact Source: Gov.ie
Understanding VAT in Ireland
Value Added Tax (VAT) is a crucial tax applied to most goods and services, acting as a key revenue source for the government. Essentially, it’s a consumption tax, meaning the end consumer ultimately bears the cost, although it’s collected at each transaction stage in the supply chain.
How VAT Works: A Quick Overview
At its core, VAT is charged at a standard rate of 23% in Ireland. This rate applies to many consumer goods and services, from clothing to fuel, where it’s often included in the final price, making it less noticeable to consumers. However, for services like electricity and certain professional services, the VAT can be more visible on invoices.
Simplified Example: The Journey of a Television
- Manufacturer to Wholesaler: A TV produced for €100 incurs a 23% VAT, costing the wholesaler €123. The €23 VAT is forwarded to the government.
- Wholesaler to Retailer: The wholesaler sells the TV for €200 plus 23% VAT (€46), making it €246. The wholesaler remits €46 to the government but reclaims the €23 paid earlier, effectively paying €23 in VAT.
- Retailer to Consumer: Finally, the retailer sells the TV to a consumer for €300 plus VAT (€69), totaling €369. The retailer sends €69 to the government, deducting the €46 VAT paid during purchase, leaving a net VAT contribution of €23.
In this cycle, the government collects VAT at each step, but only the amount based on the product’s final sale price is retained, demonstrating the value-added principle of this tax.
How to Reclaim VAT in Ireland
VAT (Value Added Tax) can be reclaimed under specific conditions, depending on whether you are registered for VAT or not. Understanding these conditions can lead to significant savings, particularly for businesses and individuals with disabilities.
For Individuals Not Registered for VAT
- People with Disabilities: Individuals with disabilities are eligible to reclaim VAT on certain aids and appliances designed for their personal use. This provision is aimed at reducing the financial burden associated with these essential items.
For VAT-Registered Entities
- Businesses: VAT registration is a prerequisite for businesses to manage their tax obligations effectively. Once registered, businesses gain the ability to reclaim VAT on business-related purchases. This process is crucial for managing cash flow and reducing the net cost of goods and services used in the business.
VAT Guidelines for Residential Properties in Ireland
Understanding VAT implications is crucial when dealing with residential properties. Here’s a simplified overview:
New Homes
- Buying New Properties: Purchases of new homes from builders or developers attract a VAT rate of 13.5%. This is included in the sale price.
Existing Homes
- Older Properties: VAT does not apply to the sale or purchase of pre-existing (‘old’) homes.
Land Purchases
- Buying Land: No VAT on land purchases unless there’s a joint agreement with a landowner and builder for development.
Resale of New Properties
- Reselling New Homes: A new property resold within 5 years of completion is VAT-taxable if it was unoccupied for at least 2 years. For detailed tax implications, refer to Revenue’s guidelines.
Landlord Considerations
- Rental Properties: Rental income from residential properties is exempt from VAT.
Stamp Duty Clarification
- VAT and Stamp Duty: If VAT was paid on a new house purchase, stamp duty is only due on the property’s base price. For instance, if a new house costs €227,000 (including 13.5% VAT), stamp duty is calculated on the base price of €200,000, excluding VAT.
VAT on Imported Goods for Personal Use
Understanding VAT and import duty on goods imported into Ireland is essential for consumers. Here’s a straightforward guide:
Imports from Outside the EU
- General Rule: All goods acquired from outside the EU, whether purchased online or by mail order, are subject to VAT and import duties at the same rates as similar goods sold within Ireland.
Purchases Within the EU
- VAT Payment: For goods bought within the EU, VAT is generally paid in the country of purchase. However, some exceptions might apply, affecting where and how VAT is charged.
VAT on Online Purchases: A Guide
Navigating VAT on online purchases, especially from abroad, can be complex. Here’s what you need to know:
Purchases from Outside the EU
- No More VAT Exemptions: As of 1 July 2021, the VAT exemption for goods valued up to €22 from outside the EU has been removed. Now, all such goods are subject to VAT.
- Import One Stop Shop (IOSS): Many online retailers participate in the IOSS, meaning VAT may be included in the price you see online. Check if tax and duty costs are included before purchasing.
- Customs and Excise Duty: Goods over €150 attract customs duty. Additionally, alcohol and tobacco products are subject to excise duty, which is separate.
Purchases from EU Member States
- VAT Rates: Goods bought online or via mail from another EU country are generally subject to VAT at the Irish rate. However, if the seller hasn’t surpassed Ireland’s Distance Sales Threshold, you might be charged VAT at the rate of the country of purchase. This will be made clear at the point of checkout.
For detailed guidance on duties and taxes for goods bought outside the EU, refer to Revenue’s comprehensive guide.
Guidelines for Travelling with Purchases to Ireland
Navigating tax and duty exemptions for goods brought into Ireland can vary significantly depending on their origin—outside the EU or from within the EU. Here’s what travelers need to know:
From Outside the EU
- Tax Exemptions: Goods brought into Ireland from non-EU states are tax-free up to a value of €430 for individuals over 15 and €215 for those under 15. This exemption excludes tobacco and alcohol products.
- Above Exemption Limits: For items exceeding these values, VAT and customs duty apply to the total value of the goods. Detailed information for arrivals from outside the EU is available via Revenue’s resources.
From EU Member States
- No Purchase Limits: When travelling between EU countries, you can bring an unlimited amount of goods for personal use without additional taxes, as VAT is included at the point of purchase.
- Vehicles: Importing a vehicle from another EU country is an exception, with specific tax implications.
- Excise Duty Goods: Alcohol and tobacco products are subject to special rules regarding excise duty, even when arriving from within the EU.
Gifts from Outside the EU
- Gift Exemption: Gifts valued up to €45 from non-EU countries are exempt from import charges, provided they are correctly declared.
For comprehensive details on tax and duty exemptions, consult Revenue’s guide on imports.