VAT Calculator
VAT Calculator Ireland Calculate VAT Easily
Understanding VAT calculation can take a long time for businesses or individuals registered as VAT taxpayers in Ireland. Make the process quick and simple with our online VAT calculator Ireland. Easily determine the VAT on a net price or see how much is included in the total price!
See How To Use VAT Calculator Ireland
Our Irish VAT calculator is an efficient tool that helps save you time and effort. It provides accurate results without needing to perform complex formulas yourself. If you want to calculate VAT in Ireland or understand the inclusive of VAT meaning, the tool does the hard work for you. See how to use it!
Adjust the VAT Rate
The VAT rate is preset to 23%, but you can change it if necessary.
Adjust the VAT Rate
The VAT rate is preset to 23%, but you can change it if necessary.
Adjust the VAT Rate
The VAT rate is preset to 23%, but you can change it if necessary.
What Is VAT?
VAT tax, or value added tax, is a type of tax that’s collected by VAT registered businesses. It’s added to goods and services at every step of their production or sale and you pay it as part of the price when buying something. But if you’re wondering what does VAT mean? It’s the amount businesses collect for the government. In Ireland, the standard VAT rate is 23%, with reduced rates of 13.5%, 9%, and 4.8% for specific goods or services.
How Is VAT Calculated In Ireland?
You can use VAT Checker Ireland for quick calculations. But for people curious about how to calculate VAT on their own, we have added this simple guide. Learning how to calculate VAT in Ireland isn’t hard. VAT is calculated based on the product or service’s selling price. As a business or consumer, it’s important to understand what net VAT means (net price), the VAT rate, the VAT amount, and the total price. It’ll be easiest to understand with formulas and examples.
See how to add VAT to a price and how to remove VAT with clear steps:
Adding VAT To A Price
Formula: Net Price × (1 + VAT Percentage) = Gross Price
Example (Normal Rate – 23%):
- Net price: €200
- Calculation: €200 × 1.23 = €246 (Gross Price, including VAT)
Example (Reduced Rate – 13.5%):
- Net price: €100
- Calculation: €100 × 1.135 = €113.50
Example (Reduced Rate – 9%):
- Net price: €50
- Calculation: €50 × 1.09 = €54.50
Removing VAT From A Price
Formula: Gross Price ÷ (1 + VAT Percentage) = Net Price
Example (Normal Rate – 23%):
- Gross price: €123
- Calculation: €123 ÷ 1.23 = €100 (Net Price, excluding VAT)
Example (Reduced Rate – 13.5%):
- Gross price: €135
- Calculation: €135 ÷ 1.135 = €118.95
Example (Reduced Rate – 9%):
- Gross price: €90
- Calculation: €90 ÷ 1.09 = €82.57
Updated 2025 Irish VAT Rates
The above calculation won’t make sense unless you know VAT rates in ireland. There are five different rates of VAT in Ireland. How much is VAT in Ireland? They range from zero to the standard rate of VAT in Ireland, which is 23%. Read more about us on our About Us page.
Each rate applies to specific goods and services, see what’s the application of each rate:
Standard Rate: 23%
This is the Ireland VAT rate applied to most goods and services, such as electronics, clothing, and general retail items. It is the most commonly used rate.
First Reduced Rate: 13.5%
This rate covers services like electricity, fuel, arts and theatre tickets, restaurant and catering services, and cleaning. It also applies to:
- Energy for heating and lighting
- Repair and maintenance services
- Short-term hire of vehicles, boats, and caravans
- Veterinary services
Second Reduced Rate: 9%
This rate is applied to facilities for sporting activities, newspapers, and electronically supplied publications.
Livestock Rate: 4.8%
This rate is specific to livestock and horses used in food production or agriculture.
Zero Rate: 0%
The zero rate applies to exports, basic food items (e.g., bread, tea, milk), children’s clothing, medicines, and certain agricultural goods.
Important VAT Details For Irish Taxpayers
VAT is a part of Ireland’s taxation system. Understanding its role can help individuals and businesses manage their responsibilities effectively. Firstly, it is a consumption-based tax. Unlike traditional sales tax, which is only collected at the final sale, VAT applies throughout the supply chain.
- Each business adds VAT to its sales (output VAT).
- Businesses can reclaim VAT paid on purchases (input VAT). (Read the section given below to know how!)
- The difference between output and input VAT is paid to the government.
This way, the tax burden is passed along the chain. Consumers ultimately pay the full VAT when making a purchase. This system reduces tax evasion and promotes transparency in financial reporting.
Is VAT Necessary To Pay?
Yes, VAT is a major source of revenue for the Irish government. It helps fund public services like healthcare, education, and infrastructure. The Irish VAT rate is designed so that the system works fairly. Ireland applies reduced and zero VAT rates to essential goods like food, books, and medicine. These rates ease costs for consumers and maintain government revenue.
VAT Compliance For Businesses
Yes, VAT is a major source of revenue for the Irish government. It helps fund public services like healthcare, education, and infrastructure. The Irish VAT rate is designed so that the system works fairly. Ireland applies reduced and zero VAT rates to essential goods like food, books, and medicine. These rates ease costs for consumers and maintain government revenue.
- Charging VAT on sales.
- Issuing invoices with a valid VAT number.
- Keeping detailed records of all transactions.
- Submitting accurate VAT returns on time.
These requirements can seem overwhelming for small businesses. Many hire accountants or tax professionals to handle their VAT obligations.
VAT And International Trade
VAT rules differ when trading internationally:
- Exports are usually taxed at a zero rate.
- Imports are taxed at the destination country’s VAT rate.
This system ensures fairness in trade. For example, if you buy a product in another EU country, you only pay VAT in that country. Additional VAT is not charged when you return to Ireland.
Is It Fair?
Some people argue that VAT is unfair. It charges the same percentage to everyone, regardless of income. This can place more strain on lower-income households. To address this, Ireland uses reduced and zero VAT rates for essentials. Items like food, children’s clothing, and medicines have lower or no VAT. This helps balance the system and makes vital goods more affordable. So, overall, it is fair as you can also reclaim it!
Reclaiming VAT Back In Ireland
How to reclaim VAT? It can be reclaimed under specific conditions. The process differs for individuals and businesses. Knowing your eligibility and how the system works can save money and reduce costs. Here’s how:
For Individuals Without Registration
There’s a VAT relief for people with disabilities. They can reclaim VAT on specific aids and appliances purchased for personal use. This includes essential items like mobility aids, medical devices, or equipment. This refund helps reduce the financial burden of these necessary purchases.
For Registered Businesses In Ireland
Businesses need to register for VAT to claim refunds. Registration allows businesses to offset VAT paid on purchases against VAT charged on sales. It also helps manage cash flow and reduces overall business expenses. Follow this to claim VAT refunds:
- Keep all VAT invoices and records of purchases.
- File VAT returns regularly, including details of input VAT (paid on purchases).
- Submit claims accurately and on time to avoid penalties.
Essential VAT Facts For Ireland Residents
To conclude, here are six interesting facts about VAT that you might not know. These insights will show you how VAT operates globally and locally.
Where Did VAT’s Origin Spread From?
VAT was first introduced in France in 1954. It has since become a global standard for indirect taxation.
Ireland VAT History
The VAT was introduced in Ireland on 1 November 1972 and initial vat rate was 16.37%.
VAT’s Contribution to Revenue
In the 2023 tax year, VAT brought in €20 billion in Ireland alone.
VAT Rates Around the World
Thinking Ireland’s 23% rate is too much? Hungary holds the highest VAT rate at 27%. It’s followed by Iceland at 25.5%. And countries like the Bahamas and Hong Kong do not impose VAT at all.
Unusual VAT Legal Battles
Famous brands like Jaffa Cakes and Tunnock's Snowballs have fought legal battles to prove their products are cakes (VAT-free) rather than cookies (taxed).
Frequently Asked Questions
Have question? Reach out to us any time.
What is a VAT number in Ireland?
A VAT number in Ireland is a unique identifier given to businesses when they register for VAT. It starts with “IE” followed by eight characters and the last one is always a letter.
How can I file VAT in Ireland?
You need to register for VAT if your turnover exceeds the threshold. Filing is typically done online through the Irish Revenue Commissioners (IRC).
Is VAT applied to all products in Ireland?
No, VAT rates vary depending on the product. See the VAT rates given above!
How do I check if a VAT number is valid?
You can verify a VAT number using official services. For European companies, use the VIES VAT number validation tool. For UK businesses, there’s a separate UK VAT number checker.