Vat Calculator
The average PAYE worker does not claim a deduction for the majority of their allowable expenses.
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What is VAT?
Value Added Tax (VAT) is a consumption tax applied to goods and services across the European Union (EU), including Ireland. Ultimately, the burden of VAT falls on the final consumer, while businesses collect and remit it to the government. Whether you’re shopping locally, importing goods, or running a business, understanding VAT is essential for compliance and proper financial planning.
| VAT% | Category |
|---|---|
23% | Alcohol, audio-visual equipment, car parts and accessories, CDs, computers, consultancy services, cosmetics, detergents, diesel, fridges, furniture and furnishings, hardware, jewellery, lawnmowers, machinery, office equipment, pet food, petrol, paper, tobacco, toys, tools, bottled water, washing machines and most medicines (non-oral). |
13.5% | Coal, heating oil, vet fees, building and building services, agricultural contracting services, short-term car hire, cleaning and maintenance services. |
9% | Gas and electricity were reduced to this rate from 1 May 2022 and extended to 30 April 2025 by Budget 2025. Also applies to certain printed materials such as brochures, maps and programmes. |
4.8% | VAT specifically for agriculture. It applies to livestock (excluding chickens), greyhounds and the hire of horses. |
0% | All exports, tea, coffee, milk, bread, books, children’s clothes and shoes, vegetable seeds and fruit trees, fertilisers, large animal feed, oral medicine for humans and animals, disability aids such as wheelchairs, crutches and hearing aids. |
VAT Rates in Ireland
Ireland operates with a multi-tiered VAT system, which includes a standard rate, reduced rates, and zero-rated goods.
The standard VAT rate is 23%, applying to most goods and services such as electronics, alcohol, and furniture. However, there are several reduced rates designed for specific categories:
- 13.5%: This rate covers heating oil, construction services, vet fees, arts and theatre tickets, and catering services.
- 9%: Extended to April 30, 2025, this reduced rate applies to newspapers, sporting facilities, and energy services like gas and electricity.
- 4.8%: Exclusively for agricultural purposes, this rate includes livestock (excluding chickens), greyhounds, and horse hire.
- Zero-rated goods include exports, children’s clothing, essential foods (bread, milk), disability aids, and certain medicines. Additionally, from January 2024, ebooks and audiobooks are zero-rated.
Goods and services exempt from VAT include financial, medical, and educational services, as well as specific live performances. Unlike zero-rated items, businesses dealing in exempt goods cannot reclaim VAT on their purchases.
How VAT is Charged
VAT is charged at every stage of the supply chain, from manufacturing to retail. The tax is embedded in the price of goods or services, with each entity passing it down the chain and reclaiming the VAT they paid to suppliers.
For example:
- A manufacturer sells a product for €100, adding €23 in VAT (23%). The total cost to the wholesaler is €123, and the manufacturer remits the €23 to the government.
- The retailer buys the product for €246 (including VAT) and sells it to the consumer for €369. Of this, €69 is VAT, which the government ultimately collects.
This system ensures that VAT is charged only on the final price paid by the consumer.
How to Calculate VAT
Using our VAT calculator is a straightforward way to determine prices inclusive or exclusive of VAT.
To include VAT, multiply the original price by:
- 1.23 for the standard rate (23%)
- 1.135 for the 13.5% reduced rate
- 1.09 for the 9% reduced rate
- 1.048 for the 4.8% rate
To exclude VAT, divide the total price by the same factors:
- 1.23 for the standard rate
- 1.135 for the 13.5% reduced rate
- 1.09 for the 9% reduced rate
- 1.048 for the 4.8% rate
This tool is especially helpful for businesses setting prices or consumers checking the breakdown of costs.
VAT for Imports and Exports
If you’re importing goods into Ireland, VAT applies based on Irish rates, even for goods purchased online. For items from non-EU countries, customs duties apply to goods valued over €150, and excise duties are charged on alcohol and tobacco products.
Exports, on the other hand, are generally zero-rated. This means no VAT is charged, but businesses must still report these transactions in their VAT returns.
Claiming Back VAT
VAT refunds are available in specific situations.
For individuals, those with disabilities can reclaim VAT on certain aids and appliances. For businesses, VAT-registered entities can reclaim VAT on purchases related to taxable supplies. However, businesses dealing only in exempt goods cannot reclaim VAT.
The ability to reclaim VAT ensures businesses only bear the tax burden on their value-added portion of goods or services.
Reverse Charge (Self-Accounting)
In certain scenarios, the reverse charge mechanism applies, requiring the recipient of goods or services to account for VAT instead of the supplier. This typically occurs for:
- Intra-Community acquisitions within the EU
- Services received from abroad
- Construction services provided by subcontractors
- Scrap metal dealings or connected construction transactions
The reverse charge system simplifies VAT collection for cross-border transactions and ensures compliance within the EU framework.
VAT Refunds for Travelers
Non-EU travelers shopping in Ireland can claim VAT refunds for purchases over €30 made in tax-free stores. The process involves obtaining a tax refund form from the retailer, presenting it along with receipts at customs, and receiving the refund either at the airport or through a refund company.
VAT and Fraud Prevention
Businesses must exercise caution to avoid becoming involved in VAT fraud, whether knowingly or unknowingly. Fraudulent activities can lead to severe penalties, including:
- Loss of the right to reclaim VAT
- Liability for VAT on transactions previously zero-rated
To protect themselves, businesses should thoroughly verify their supply chain and ensure compliance with VAT regulations.
Use the VAT Calculator
Whether you’re a business owner setting prices or a consumer verifying costs, this VAT calculator simplifies the process. Enter your amount and VAT rate to instantly calculate VAT-inclusive or VAT-exclusive prices. With this tool, you can save time, reduce errors, and ensure compliance with Irish VAT laws.
