How Much is VAT in Ireland? Rates, Rules and Examples

How much is VAT on a €100 item in Ireland?

At the 23% standard VAT rate in Ireland, €100 × 1.23 = €123, so the VAT portion is €23 and the customer pays €123. The same €100 item costs a different amount at each reduced rate, as the worked VAT Ireland examples below show:

Irish shop prices are shown VAT-inclusive, so the price on the tag is the price you pay — the VAT is already inside it. That is why the more useful everyday skill is the reverse calculation: working out how much VAT is already inside a price. Our guide to checking the VAT amount on a bill shows the same reverse check for UK, UAE and EU invoices.

How do you add VAT to a price in Ireland?

To add VAT in Ireland, multiply the net price by one plus the VAT rate as a decimal. The multipliers for the three main rates are:

• At 23%: net price × 1.23. Example: €250 × 1.23 = €307.50, so the VAT is €57.50.
• At 13.5%: net price × 1.135. Example: €500 × 1.135 = €567.50, so the VAT is €67.50.
• At 9%: net price × 1.09. Example: €1,000 × 1.09 = €1,090, so the VAT is €90.

The same method answers how to calculate VAT in Ireland for any amount: pick the rate for the item, multiply the net price by the matching multiplier, and the difference between the two figures is the VAT. The free Ireland VAT calculator does this instantly for all five rates, and our VAT calculator guide explains the same add-VAT maths for the UK, Germany, France, UAE and Saudi Arabia.

How do you extract VAT from a price that already includes it?

To extract VAT in Ireland from a VAT inclusive price, divide the gross price by one plus the rate as a decimal to get the net price, then subtract. The VAT portion itself is gross price × rate ÷ (100 + rate). Worked examples:

• At 23%: €120 ÷ 1.23 = €97.56 net, so the VAT is €22.44. Shortcut: the VAT is the total × 23 ÷ 123, which is the same as dividing the total by about 5.35.
• At 13.5%: €113.50 ÷ 1.135 = €100 net, so the VAT is €13.50.
• At 9%: €109 ÷ 1.09 = €100 net, so the VAT is €9.

Never just subtract the rate percentage from the gross price: subtracting 23% from €123 gives €94.71, not the correct net price of €100. The percentage is calculated on the net price, not on the gross price, so the division above is the only correct reverse calculation. Our guide to finding the VAT in any price shows the same shortcuts for the UK and UAE rates.

How much VAT is on a restaurant meal in Ireland?

From 1 July 2026, restaurant and catering services in Ireland are charged at the 9% second reduced rate, down from 13.5% — a change made by Finance Act 2025 and confirmed in Revenue's Tax and Duty Manual on restaurant and catering services. The same 9% rate applies to hot takeaway food, hot tea and coffee, and hairdressing. A €60 restaurant meal that includes VAT therefore contains €4.95 of VAT (€60 × 9 ÷ 109), leaving a net price of €55.05. But not everything on the table is 9%: alcohol, bottled water, soft drinks, sports drinks and vegetable juices served with the meal stay at the 23% standard rate, even when eaten in. And the rate depends on how the food is served — a cold sandwich taken away is zero-rated at 0%, while the same food eaten in as a restaurant service is 9%.

The 9% restaurant VAT Ireland rate is the single biggest recent change to the Ireland VAT rate, and it is the one older guides get wrong: any page written before July 2026 still shows 13.5% for restaurant meals. Hairdressing VAT moved on the same date: a haircut is now charged at 9% instead of 13.5%. Hotel accommodation, by contrast, stays at 13.5% — a hotel VAT Ireland booking is not affected by the restaurant change, so a hotel dinner and a hotel room on the same bill can carry two different rates.

What is zero-rated and what is exempt in Ireland?

Zero-rated VAT Ireland treatment and VAT-exempt treatment look the same on an invoice — no VAT is charged either way — but they are opposites for the business. On a zero-rated sale the business stays inside the VAT system and can reclaim the input VAT it paid on its costs; on an exempt sale it sits outside the system and cannot reclaim anything.

The VAT on food Ireland rules are the most common source of confusion: most basic groceries are zero-rated, but confectionery, crisps and soft drinks are not — they are charged at 13.5% or 23% depending on the item. A cold sandwich from a supermarket is 0%; the same sandwich served hot as takeaway is 9% from 1 July 2026; and a soft drink with it is 23%. When in doubt, check the item in Revenue Ireland's VAT rates database before invoicing — the rate follows the exact product, not the shop.

When does a business have to register for VAT in Ireland?

The VAT registration threshold in Ireland is €85,000 for businesses supplying goods and €42,500 for businesses supplying services, in a calendar year. The thresholds were raised from €80,000 and €40,000 on 1 January 2025, and the test now runs on calendar years rather than a rolling 12 months. A mixed business where 90% or more of turnover comes from goods uses the €85,000 threshold; otherwise the €42,500 services threshold applies to the whole business. Once turnover exceeds the threshold — or is likely to — the business must register with Revenue within 30 days, through the Revenue Online Service (ROS), and start charging VAT from the sale that takes it over the line. Registration gives you a VAT number Ireland businesses must show on tax invoices. Businesses below the threshold may still register voluntarily, which lets them reclaim input VAT. Once registered, a business files a VAT return Ireland (VAT 3) for each taxable period — usually every two months — and pays Revenue the VAT it collected minus the VAT it paid on its purchases.

How does Ireland's VAT compare with the UK, France and Germany?

Ireland's 23% standard rate is higher than the UK, France and Germany — only a handful of EU countries charge more. The comparison below uses each country's standard rate and its main reduced rates:

The gap matters most on big purchases: a €1,000 laptop carries €230 of VAT in Ireland but €200 in the UK or France and €190 in Germany. Read our UK VAT guide and France VAT guide for the same breakdown country by country.

Five common mistakes when you calculate VAT in Ireland

• Using the old 13.5% rate for restaurant food. Restaurant and catering services, hot takeaway food and hairdressing moved to 9% on 1 July 2026. A guide or price list written before that date charges 13.5% — too much.
• Subtracting the percentage from the gross price. Taking 23% off a €123 VAT-inclusive price gives €94.71, not the €100 net price. Divide by 1.23 instead — €123 ÷ 1.23 = €100, with €23 of VAT.
• Confusing zero-rated with exempt. Both charge no VAT, but a zero-rated business can reclaim the VAT on its costs and an exempt business cannot. Getting this wrong means losing input VAT you were entitled to claim back.
• Charging 23% on everything. Hotel stays are 13.5%, restaurant meals are 9%, and most basic food and children's clothing are 0%. The standard rate is the default, not the only rate.
• Missing the registration threshold. A business that passes €85,000 of goods turnover or €42,500 of services turnover in a calendar year must register within 30 days and charge VAT from the sale that crosses the line — late registration can mean backdated assessments, interest and fines.