What is VAT in Ireland?
Value-added tax, or VAT, is a tax on most goods and services sold in the Republic. Businesses collect it from customers, take off the VAT they paid on their own purchases, and send the balance to Revenue. The customer ends up paying it. A café in Galway, a plumber in Cork and a web designer in Dublin all deal with it every week.
The country follows the EU VAT system, so the principles are shared with other member states, but each one sets its own rates. Registration is compulsory once turnover passes the Revenue threshold, and optional below it. Many small traders register early anyway, so they can reclaim VAT on stock and equipment.
Current Irish VAT rates
Revenue publishes the official list, and it is worth checking before you issue an invoice. These are the rates this tool offers:
| Rate | Typically applies to |
|---|---|
| 23% | Standard rate: most goods and services, such as laptops, furniture, adult clothing and professional fees |
| 13.5% | Reduced rate: items like fuel, building work, repairs and hairdressing |
| 9% | Second reduced rate: for example newspapers, e-books and some cultural services |
| 4.8% | Livestock and certain greyhound-related services |
| 0% | Most food and drink, children's clothes and shoes, books and some medicines |
Rates and categories move with each Budget, so treat this list as a guide, not a ruling. Read the official Revenue VAT rates page for the final word.
How to calculate VAT in Ireland: adding VAT
People often search for how to calculate VAT Ireland shops use at the till, and the answer is one multiplication. Start with the net price, the amount before tax. Multiply it by the rate, then divide by 100. That gives the VAT. Add it to the net price and you have the gross price.
VAT = Net × Rate ÷ 100
Gross = Net + VAT
Here is a shortcut. Multiply by 1.23 for 23%, by 1.135 for 13.5%, or by 1.09 for 9%. Learning how to calculate VAT this way saves time when you are quoting jobs on site. A plumber charging €400 net at 13.5% adds €54.00 and bills €454.00.
How to calculate the VAT from gross amount
Sometimes all you have is a receipt total. The VAT is already inside it, so you need to work backwards. Divide the gross amount by 1 plus the rate. At 23% you divide by 1.23. The result is the net price. Subtract it from the gross amount and what remains is the VAT.
Net = Gross ÷ (1 + Rate ÷ 100)
VAT = Gross − Net
A €246 receipt at 23% gives €246 ÷ 1.23 = €200.00 net, with €46.00 VAT. The classic slip is taking 23% off €246. That gives €189.42, which is wrong, because the 23% was worked out on the net price and not on the total. Knowing how to calculate the VAT from gross amount correctly avoids this.
VAT inclusive vs VAT exclusive prices
An exclusive price is the net figure before VAT. An inclusive price already contains it. Irish shop shelves show inclusive prices because customers expect to pay exactly what they see. Between businesses, quotes are often exclusive, so a supplier might say "€1,000 plus VAT". Always check which kind of price you are looking at before you add or remove anything. This VAT calculator handles both: choose Add VAT for exclusive amounts and Remove VAT for inclusive ones.
Worked examples for every rate
Standard rate: 23%
A Dublin freelancer sells a design package for €1,250 net. VAT is €287.50, so the invoice total is €1,537.50.
Reduced rate: 13.5%
A Limerick contractor quotes €1,800 for a small repair job. VAT at 13.5% is €243.00, giving €2,043.00 in total.
Second reduced rate: 9%
A monthly e-book subscription costs €30 net. VAT at 9% is €2.70, so you pay €32.70.
Livestock rate: 4.8%
A farmer in Roscommon sells livestock worth €2,000. At 4.8% the VAT is €96.00 and the total is €2,096.00.
Zero rate: 0%
Children's shoes at €45 carry no VAT. Net, VAT and gross are €45.00, €0.00 and €45.00.
Working backwards
A Cork salon receipt shows €85.40 for a cut and colour at 13.5%. Divide by 1.135 and the net is €75.24, with €10.16 VAT.
Who uses this VAT calculator?
Sole traders, bookkeepers, market stallholders, commercial landlords, students and ordinary shoppers all use it. Pub and restaurant owners check menu pricing. Freelancers check invoices before sending them. Importers compare quotes. Anyone who needs a fast Irish VAT calculator without opening a spreadsheet will find it handy. It works on phones too, so you can use this VAT calculator Ireland tool at the counter or in the van.
Irish VAT versus the UK: when a VAT calculator UK page misleads
Many Irish traders also deal with suppliers across the Irish Sea. A VAT calculator UK page uses the UK standard rate of 20%, which is not an Irish rate. Using it for an Irish invoice understates the tax that 23% would produce. That is why a VAT calculator UK result and an Irish one will never match. Likewise, do not use this tool for UK sales. Keep the two systems separate, because cross-border rules have been different since Brexit. If you buy or sell goods across the border, ask Revenue or your accountant.
Tips for quoting and invoicing
State clearly whether a price includes VAT. Show net, VAT and gross on separate lines. Put your VAT number on every invoice and keep receipts for as long as Revenue requires. If a customer wants a round price, work backwards from the total they want. To hit €500 inclusive at 23%, the net price is €406.50 and the VAT is €93.50.
Common VAT mistakes to avoid
- Subtracting the rate from the gross price instead of dividing.
- Using 23% for everything. Many services sit at 13.5%.
- Rounding too early. Round only the final figures.
- Mixing inclusive and exclusive prices on one invoice.
- Treating zero-rated and exempt as the same thing. Zero-rated sales still count as taxable supplies.
- Using UK rates on Irish sales.
Important notes
This tool is for general information. It is not tax, legal or financial advice, and its rounding may differ slightly from your accounting software. VAT has exceptions, such as mixed supplies, margin schemes and cross-border services. Check the Revenue website or speak to a qualified accountant before you file a return.
Summary
Irish VAT comes down to a handful of rates and two simple formulas. To add VAT, multiply the net price by the rate. To remove it, divide the gross price by 1 plus the rate. Now you know how to calculate VAT Ireland businesses deal with every day, you can check any quote in seconds. Bookmark this VAT calculator Ireland page, and use the Irish VAT calculator whenever a price looks off.
Frequently asked questions
What are the current Irish VAT rates?
The standard rate is 23%, the reduced rate is 13.5%, and the second reduced rate is 9%. Livestock carries 4.8%, while items such as most food and children's clothing are zero-rated at 0%. Revenue publishes the official list, so always confirm there before invoicing.
How to calculate VAT in Ireland?
Multiply the net price by the rate, then add the result. For €200 at 23%, VAT is €46 and the total is €246. For a quick total, multiply the net price by 1.23. Use 1.135 for 13.5% and 1.09 for 9%.
How to calculate the VAT from gross amount?
Divide the gross price by one plus the rate. For €246 at 23%, divide by 1.23 to get €200 net. The VAT is the difference, €46. Do not take 23% off the gross figure, because that removes too much and gives the wrong net.
Is this VAT calculator accurate for invoices?
It follows the standard formulas and rounds to the nearest cent, so it suits quotes, checks and quick invoice sums. Accounting software may round line by line instead of on the total, which can differ by a cent. For filings, rely on your records and Revenue guidance.
Can I use a VAT calculator UK page for Irish prices?
No. The UK uses its own rates, with a standard rate of 20%, and the rules differ after Brexit. Irish invoices must use Irish rates. Use this Irish VAT calculator for sales in the Republic and check each country's rules separately.
What is the difference between VAT inclusive and exclusive?
An exclusive price is the net amount before VAT is added. An inclusive price already contains VAT. A shelf price in Irish shops is normally inclusive, while a trade quote between businesses is often exclusive. Always check the label so you know whether to add or remove VAT.
Do I have to register for VAT?
You must register when your turnover goes over the threshold set by Revenue, which differs for goods and services. Below it, registration is optional. Registering lets you reclaim VAT on business costs but also means you must charge it. Check the current thresholds on the Revenue website.
Which items are zero-rated?
Zero-rated items carry VAT at 0%, so the price stays the same, but the seller can still reclaim VAT on costs. Examples include most food, children's clothes and shoes, books and some medicines. Rules are detailed, so confirm any doubtful product with Revenue before you sell it.