Ireland VAT Guide for 2026: Rates, Registration & Compliance
Ireland's standard VAT rate is 23%, with reduced 13.5%, 9%, and 0% bands. This guide covers registration thresholds, OSS, and filing obligations with Revenue.
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Key Takeaways
Ireland's standard VAT rate is 23%, with reduced rates of 13.5%, 9%, and 4.8%, plus a 0% rate on many essentials. An Irish-established business registers once turnover exceeds EUR 42,500 for services or EUR 85,000 for goods over 12 months, while a non-established business must register with no threshold; for EU-wide B2C distance sales, VAT is due once sales exceed the EU-wide EUR 10,000 threshold. Most food, children's clothing, and oral medicines are zero-rated; SaaS and digital products are taxable at 23%.
Taxability Snapshot
SaaS
Taxable
Digital Goods
Taxable
Clothing
Zero-rated (children's)
Sales Tax Rates
Ireland's standard VAT rate is 23%, with a reduced 13.5% rate, a second reduced 9% rate, a super-reduced 4.8% rate for agriculture, and a 0% rate on many essentials. From 1 July 2026, restaurant and catering food and hairdressing moved from 13.5% to the 9% rate, while hotel and short-stay accommodation stays at 13.5%. VAT is administered by Revenue.
Rate | Applies to |
|---|---|
Standard 23% | Most goods and services |
Reduced 13.5% | Fuel, construction, some services |
Reduced 9% | Gas and electricity, newspapers, sporting facilities; restaurant and catering food and hairdressing from 1 July 2026 |
Zero 0% | Most food, children's clothing, oral medicines |
The 9% VAT rate for restaurant and catering food and hairdressing took effect 1 July 2026 (Budget 2026); the 9% rate on gas and electricity is extended to 31 December 2030.
Registration & nexus threshold
Ireland uses VAT registration thresholds rather than US-style economic nexus. An Irish-established business must register once turnover exceeds EUR 42,500 for services or EUR 85,000 for goods over any 12 months [2]. A non-established business must register as soon as it makes taxable supplies in Ireland, with no threshold [2]. For cross-border B2C sales within the EU, VAT is due in the customer's country once total EU distance sales exceed the EU-wide EUR 10,000 threshold, reportable through the One Stop Shop [3]. Registration steps are in the How to Register section.
Filing frequency & deadlines
Most businesses file VAT every two months (bi-monthly) through Revenue's Online Service (ROS), due the 19th (or 23rd for ROS filers) of the month after the period. Smaller businesses may file quarterly, half-yearly, or annually.
Exemptions
Most food, children's clothing and footwear, and oral medicines are zero-rated, and financial, medical, and education services are exempt. SaaS and digital products are taxable at 23%; non-resident B2C sellers usually account via OSS.
Penalties
Late filing can draw a penalty of up to €4,000, incorrect returns carry penalties from 5% to 100% of the underpaid VAT, and daily interest accrues on late payments.
Sources
[1] Irish Revenue — Current VAT rates (23% standard, 13.5% and 9% reduced, 0% zero)
[2] Irish Revenue — VAT thresholds (EUR 42,500 services / EUR 85,000 goods; non-established nil)
[3] European Commission — One Stop Shop (EU-wide EUR 10,000 threshold)
[5] Irish Revenue — When VAT becomes payable (bi-monthly VAT3)
[6] Irish Revenue — Zero rate of VAT (food, children's clothing, e-books)
Verified July 2026 against Irish Revenue and European Commission guidance.
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