Ireland has four main VAT rates: Standard 23% (most goods and services), Reduced 13.5% (construction, tourism, hospitality, some food), Second reduced 9% (newspapers, sporting facilities, fuel), and Zero 0% (exports, children's clothing, most food).

To calculate VAT from a net (ex-VAT) price, multiply the net price by the VAT rate. For example, at 23%: VAT = net × 0.23, Gross = net × 1.23. To extract VAT from a gross (incl. VAT) price, divide by 1 + rate: net = gross / 1.23, VAT = gross - net.

You must register for VAT if your annual turnover exceeds €37,500 for services or €75,000 for goods. Voluntary registration is also possible in some circumstances. VAT-registered businesses must charge VAT on supplies and can reclaim VAT on business purchases.

The 13.5% rate applies to construction, tourism, hotels, restaurant meals, and certain food products. The 9% rate applies to newspapers, sporting facilities, and certain fuels. Each rate has specific qualifying criteria set by Revenue.

Yes, VAT-registered businesses can reclaim VAT on most business purchases, including goods, services, equipment, and professional fees. Certain items like entertainment expenses are blocked from reclaim.

VAT returns are filed electronically through Revenue's ROS system, typically every 2 months (bimonthly). You report your sales (output VAT) and purchases (input VAT), and pay the difference or claim a refund.

The reverse charge mechanism shifts the responsibility for accounting for VAT from the seller to the buyer. It commonly applies to construction services, certain property transactions, and cross-border B2B services.

Exports of goods to non-EU countries are zero-rated for VAT purposes. Exports to EU countries are also zero-rated if you have the customer's VAT number. Services to business customers in other EU countries may be subject to reverse charge.

Most basic food items are zero-rated (0%). Restaurant meals are subject to the standard rate (23%). Some food products like confectionery and soft drinks are also standard-rated.

New property sales are subject to VAT at 13.5% (reduced rate). Residential rent is generally exempt from VAT. Commercial property transactions can be complex and may involve VAT elections.

The threshold is €37,500 for services and €75,000 for goods. Once your turnover exceeds these limits, you must register for VAT from the date your turnover exceeds the threshold.

Yes, small businesses with annual turnover under €2 million can use cash accounting, meaning you account for VAT when payment is received or made, not when invoices are issued.