Everything you need to know about VAT in Ireland — dual thresholds for goods and services, Ireland's 23% standard rate, Revenue registration, and bi-monthly returns.
Last updated: June 2026
Ireland has two separate VAT registration thresholds depending on what you sell:
Services: €40,000 in any 12-month period. This covers consultants, freelancers, designers, software developers, coaches, and anyone primarily supplying services rather than physical goods.
Goods: €80,000 in any 12-month period. This applies to businesses that primarily sell physical products — retailers, manufacturers, wholesale suppliers.
If your business sells a mix, the applicable threshold depends on which activity accounts for more than 90% of your turnover. If neither exceeds 90%, Revenue will generally apply the lower €40,000 services threshold.
When the threshold doesn't apply: If you receive services from abroad (from EU or non-EU suppliers) that are subject to the "reverse charge" mechanism — for example, you pay for Google Ads, Facebook advertising, or cloud software subscriptions — you may need to register regardless of your own turnover. This is because Irish VAT-registered businesses are required to self-account for VAT on such purchases.
Ireland's VAT rates: 23% standard (most goods and services), 13.5% reduced (construction, hotel accommodation, hairdressing, concrete), 9% second reduced (tourism and hospitality — restaurants, cafes, hotels), 4.8% livestock, 0% zero-rated (exports, most food, children's clothing, oral medicines). VAT-exempt supplies include insurance, banking, education, and most medical services.
Go to revenue.ie and register through the Revenue Online Service (ROS). If you're a sole trader or company not yet registered with Revenue, you'll first need to register your business with Revenue (using myAccount for individuals or ROS for businesses).
Sole traders and individuals use form TR1. Companies use TR2. You'll need your PPS number (sole traders) or company registration number (CRN) from the Companies Registration Office (CRO), plus details of your expected turnover and business activities.
Revenue typically processes VAT registrations within 10–15 working days. Your Irish VAT number will start with "IE" followed by 7 or 8 digits. Include this on all VAT invoices from your effective registration date.
If you sell digital services to consumers in other EU countries, Ireland is an excellent base for the EU One Stop Shop (OSS) scheme. Rather than registering in 27 EU countries, you file a single OSS return with Revenue and pay all EU VAT in one go. This is particularly valuable for Irish-based SaaS companies, app developers, and digital content creators.
Filing bi-monthly returns: Irish VAT returns are filed every two months (January/February, March/April, May/June, July/August, September/October, November/December). Returns and payment are due by the 19th of the month following each two-month period — so the January/February return is due by 19 March. You file via ROS, which also handles payment.
Invoicing requirements: VAT invoices must include your VAT registration number, a sequential invoice number, date of supply, customer's VAT number (for B2B supplies), a description of goods/services, the net amount, the VAT rate, and the VAT amount. For retail supplies under €100, simplified invoices are allowed.
Late registration and filing: Revenue charges interest at 0.0219% per day on late VAT payments. Late registration carries a fixed penalty of up to €4,000, plus liability for all VAT that should have been collected. Revenue can also audit past years and assess VAT on periods where you were trading above the threshold but not registered.
Not yet — the services threshold is €40,000. However, if you expect to exceed €40,000 in the next 12 months, you should register before you do. Revenue expects registration to happen before the threshold is crossed if you can reasonably foresee it happening.
Yes. Voluntary registration is available to any business making taxable supplies, regardless of turnover. It makes sense if you sell primarily to VAT-registered businesses who can reclaim the VAT, or if you have significant input VAT to reclaim (for example, heavy equipment purchases).
No. Sales of goods to UK customers are zero-rated as exports (0% Irish VAT). Services to UK business customers are generally outside the scope of Irish VAT (reverse charge applies in the UK). Services to UK consumers depend on the nature of the service — consult a tax advisor for specific situations.
The 9% second reduced rate applies to the tourism and hospitality sector: restaurant and café meals, hotel and B&B accommodation, admission to cinemas, museums, and certain sports facilities. It was introduced as a Covid relief measure and was made permanent for restaurants and some tourism services. Hairdressing moved back to 13.5% in 2024.
If you sell digital services (software, streaming, e-books, online courses) to consumers in other EU countries, you must charge VAT at the rate of the customer's country. The OSS scheme lets you do this with a single quarterly return filed with Revenue, rather than registering in each EU country. This is one reason many European digital businesses choose Ireland as their EU base.
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