VAT in Ireland, Explained

Value-Added Tax is one of the first compliance obligations a growing Irish business meets, and one of the easiest to get wrong. This guide covers the essentials: when you must register, which rates apply, how filing works, and the mistakes we most often see when we take over a client's books.

When do you need to register?

You must register for VAT with Irish Revenue once your turnover exceeds (or is likely to exceed) the registration thresholds in any continuous 12-month period. Businesses below the thresholds can register voluntarily, which is often worthwhile if most of your customers are VAT-registered and you want to reclaim input VAT.

The VAT rates

• Standard rate (23%) applies to most goods and services.
• Reduced rate (13.5%) covers items such as construction services, fuel, and certain repair services.
• Second reduced rate (9%) applies to categories such as newspapers and certain hospitality supplies.
• Zero rate (0%) covers exports, most food, children's clothing, and oral medicines. Zero-rated is not the same as exempt: zero-rated businesses can still reclaim input VAT.

Filing and payment

Most businesses file bi-monthly VAT3 returns through Revenue Online Service (ROS), due by the 19th of the month following the period (extended for ROS filers who both file and pay online). Smaller businesses may qualify for less frequent filing (four-monthly, six-monthly, or annual), which Revenue assigns based on your VAT liability. An annual Return of Trading Details (RTD) summarising all supplies and purchases is also required.

Common pitfalls we see

• Missing the registration point. Trading past the threshold before registering creates back-dated liabilities.
• Wrong rate on mixed supplies. Bundled products and services frequently mix 23% and 13.5% items.
• Reclaiming blocked VAT. Input VAT on items such as passenger cars and entertainment is generally not reclaimable.
• Cross-border confusion. EU B2B supplies, reverse charge, and postponed accounting for imports each have their own treatment, and errors compound quickly.
• Ignoring the RTD. It carries no payment, so it gets forgotten, but late RTDs can delay refunds and tax clearance.

How an offshore partner helps

Our Ireland-focused team prepares VAT workings from your ledger every period, reconciles them to the trial balance, flags rate and reclaim issues before filing, and keeps the RTD ready months in advance. Your accountant or advisor reviews and files; the heavy preparation is done overnight.

This article is general information, not professional advice. Rules, rates, and thresholds change; always confirm the current position with your accountant or the relevant tax authority before acting.