VAT is simple in principle but easy to get wrong in practice. The most common mistake — multiplying a gross (VAT-inclusive) price by the VAT rate — gives you a higher number than the actual VAT content. This guide covers the correct formulas, all current Irish VAT rates, and worked examples for the amounts Irish businesses deal with most often.
Irish VAT Rates for 2026
| Rate | Applies To | Examples |
|---|---|---|
| 23% (Standard) | Most goods and services | Electronics, clothing (adults), professional services, software |
| 13.5% (Reduced) | Construction, fuel, electricity | Builder's labour, home heating oil, gas, electricity, cleaning services |
| 9% (Second reduced) | Hospitality, media | Newspapers, periodicals, hairdressing, certain food services |
| 4.8% (Livestock) | Agriculture | Livestock (other than poultry), greyhounds, horses |
| 0% (Zero-rated) | Essentials | Most food, children's clothing and footwear, books, oral medicines, passenger transport |
| Exempt | Financial, medical, educational | Financial services, insurance, medical care, postage stamps, education |
Zero-rated (0%) is still within the VAT system — you charge 0% but can reclaim input VAT on related business costs. Exempt supplies fall completely outside the VAT system — no VAT is charged, but you also cannot reclaim input VAT on costs related to those supplies.
The Two Core Formulas
Adding VAT to a Net (ex-VAT) Price
The multipliers by rate:
- 23% → multiply by 1.23
- 13.5% → multiply by 1.135
- 9% → multiply by 1.09
- 4.8% → multiply by 1.048
Removing VAT from a Gross (VAT-Inclusive) Price
Do not calculate VAT by multiplying the gross price by the VAT percentage. €123 × 23% = €28.29 — which is wrong. The actual VAT in €123 is €23. Always divide by (1 + rate) to reverse VAT.
The divisors by rate:
- 23% → divide by 1.23
- 13.5% → divide by 1.135
- 9% → divide by 1.09
- 4.8% → divide by 1.048
Worked Examples — Common Amounts
Adding 23% VAT
| Net (ex-VAT) | × 1.23 | VAT Amount | Gross (inc. VAT) |
|---|---|---|---|
| €50 | €11.50 | €61.50 | |
| €100 | €23.00 | €123.00 | |
| €250 | €57.50 | €307.50 | |
| €500 | €115.00 | €615.00 | |
| €1,000 | €230.00 | €1,230.00 | |
| €5,000 | €1,150.00 | €6,150.00 | |
| €10,000 | €2,300.00 | €12,300.00 |
Removing 23% VAT from Gross Prices
| Gross (inc. VAT) | ÷ 1.23 | VAT Element | Net (ex-VAT) |
|---|---|---|---|
| €61.50 | €11.50 | €50.00 | |
| €123.00 | €23.00 | €100.00 | |
| €307.50 | €57.50 | €250.00 | |
| €615.00 | €115.00 | €500.00 | |
| €1,230.00 | €230.00 | €1,000.00 | |
| €6,150.00 | €1,150.00 | €5,000.00 |
Adding 13.5% VAT (Construction and Utilities)
| Net (ex-VAT) | VAT @ 13.5% | Gross (inc. VAT) |
|---|---|---|
| €500 | €67.50 | €567.50 |
| €1,000 | €135.00 | €1,135.00 |
| €5,000 | €675.00 | €5,675.00 |
| €10,000 | €1,350.00 | €11,350.00 |
| €50,000 | €6,750.00 | €56,750.00 |
VAT Registration Thresholds 2026
| Type of Supply | Threshold |
|---|---|
| Goods (supplies of tangible products) | €85,000 in any 12-month period |
| Services (professional, digital, etc.) | €42,500 in any 12-month period |
| Goods and services (mixed) | Lower threshold applies (€42,500) |
| Voluntary registration | Available below any threshold |
Once you exceed the relevant threshold in any 12-month period, you must register for VAT with Revenue within 30 days. You can also register voluntarily below the threshold — useful if your customers are mainly VAT-registered businesses (they can reclaim the VAT you charge).
VAT on Invoices — What Must Be Shown
A VAT invoice issued by an Irish VAT-registered business must include:
- Invoice number (sequential)
- Invoice date
- Supplier name, address, and VAT registration number
- Customer name and address (for B2B invoices)
- Description of goods or services supplied
- Net amount (ex-VAT)
- VAT rate applied
- VAT amount
- Gross total (inc. VAT)
For invoices under €100 gross (including VAT), a simplified invoice is permitted — you don't need the customer details or a sequential number, but you must still show the VAT rate and the gross amount.
Reclaiming VAT (Input Tax)
If you are VAT-registered, you can reclaim VAT you have paid on business purchases (input tax) against the VAT you collect from customers (output tax). You pay Revenue the net difference — or receive a refund if your input VAT exceeds your output VAT in a period.
Common business expenses where VAT is reclaimable:
- Office equipment, computers, and software
- Business premises costs (if you have a licence/lease, not ownership)
- Professional services (accountant, solicitor, consultant fees)
- Business vehicles (commercial vehicles only — not passenger cars unless used exclusively for business)
- Advertising and marketing costs
- Stock and raw materials
You cannot reclaim VAT on:
- Passenger cars (unless you're a car dealer or taxi operator)
- Business entertainment expenses
- Costs related to exempt activities
- Private (non-business) use of any purchase
Free Irish VAT Calculator
Skip the maths. Our free VAT calculator adds or removes VAT at any Irish rate instantly — just enter the amount and select the rate.
Use the VAT CalculatorFrequently Asked Questions
What is the standard VAT rate in Ireland in 2026?
The standard VAT rate in Ireland is 23%. A reduced rate of 13.5% applies to construction, fuel, and electricity. A second reduced rate of 9% applies to newspapers and certain food services. Most food, children's clothing, books, and oral medicines are zero-rated (0%). Financial services and insurance are VAT exempt.
How do I add VAT to a price in Ireland?
To add 23% VAT to a net price, multiply by 1.23. For 13.5% VAT, multiply by 1.135. For 9% VAT, multiply by 1.09. Example: €100 net + 23% VAT = €100 × 1.23 = €123 gross. The VAT amount is €23.
How do I remove VAT from a price in Ireland?
To remove 23% VAT from a gross (VAT-inclusive) price, divide by 1.23. Example: €123 gross ÷ 1.23 = €100 net. The VAT element is €23. Do not multiply the gross by 23% — that gives the wrong answer (€28.29 instead of €23). The correct formula is: Net = Gross ÷ (1 + rate).
What is the VAT registration threshold in Ireland in 2026?
The VAT registration threshold is €85,000 for supplies of goods and €42,500 for supplies of services in any 12-month period. Once you exceed these thresholds, you must register for VAT with Revenue within 30 days. You can also register voluntarily below the threshold.
How much is €1,000 plus VAT in Ireland?
€1,000 + 23% VAT = €1,230 (VAT = €230). €1,000 + 13.5% VAT = €1,135 (VAT = €135). €1,000 + 9% VAT = €1,090 (VAT = €90).
What is the difference between zero-rated and VAT exempt in Ireland?
Zero-rated supplies (0%) are still within the VAT system — you charge 0% VAT but can reclaim input VAT on related costs. Exempt supplies fall outside the VAT system entirely — no VAT is charged and you cannot reclaim input VAT on related costs. Food, books, and children's clothing are zero-rated. Financial services and insurance are exempt.