Ireland VAT Calculator (23%, 13.5%, 9% Rates)

Ireland VAT Guide

Irish VAT Rates

Value Added Tax (VAT) in Ireland is charged at several rates depending on the goods or services. The standard rate is 23%, applying to most goods and services. There are reduced rates: 13.5% applies to many items including fuel, electricity, building services, and certain repair and maintenance work; and 9% (a second reduced rate) applies to certain categories such as newspapers, some tourism and hospitality items at various times, and certain other goods and services. A 0% (zero) rate applies to most food, children's clothing and footwear, oral medicines, and books, among other items — these are taxable but at 0%, which differs from 'exempt'. There's also a special flat-rate scheme for farmers. The rates and what falls into each category can change in Budgets and are subject to specific rules, so the correct rate for a particular product or service should be confirmed with Revenue.ie. This calculator lets you apply any of the main rates to add VAT to a net price or extract it from a gross total, which covers most everyday and business needs.

Adding and Removing VAT

This calculator works in both directions. Adding VAT takes a net (VAT-exclusive) amount and adds the VAT — useful for businesses pricing goods or services, or for understanding the final consumer price from a trade quote given 'plus VAT'. Removing VAT (back-calculating) takes a gross (VAT-inclusive) total and works out the net amount and the VAT it contains — useful for expense claims, bookkeeping, and identifying the VAT portion of a receipt. A key point on removing VAT: you don't simply subtract the percentage. To extract 23% VAT from a gross amount, you divide by 1.23 to get the net, then the difference is the VAT. For example, a €123 gross price at 23% contains €23 of VAT and €100 net (€123 ÷ 1.23 = €100). For the 13.5% rate you divide by 1.135, and for 9% by 1.09. This calculator handles the correct arithmetic for whichever rate you select. Consumer prices in Ireland are shown VAT-inclusive, so the price you see in a shop already includes VAT — the add/remove function is most useful for business pricing, quotes given ex-VAT, and bookkeeping.

VAT for Businesses

VAT has significant implications for Irish businesses. A business must register for VAT once its turnover exceeds the relevant threshold (there are separate thresholds for goods and services), and can register voluntarily below it. Once registered, the business charges VAT on its taxable sales (output VAT) but can reclaim the VAT it pays on business purchases and expenses (input VAT), paying Revenue the net difference, typically via bi-monthly VAT returns. This means VAT is ultimately borne by the final consumer, with businesses in the chain passing it through. Accurate VAT accounting matters: applying the correct rate to each sale, issuing proper VAT invoices, reclaiming valid input VAT, and filing returns on time. Cross-border VAT (within the EU and beyond) has its own rules, including reverse-charge mechanisms and the treatment of goods and digital services — Ireland being in the EU, intra-EU trade follows EU VAT rules. For businesses, getting VAT registration, rates, invoicing, and returns right is a core compliance task, and many use accounting software or an accountant. This calculator handles the basic rate calculations underpinning pricing and bookkeeping; for registration, returns, and compliance, Revenue.ie and a qualified accountant provide the rules.

VAT in Everyday Use

Knowing how Irish VAT works helps in several situations. Checking receipts: a VAT receipt shows the VAT amount, which you can verify (for a 23% item, the VAT is the gross divided by 1.23, subtracted from the gross). Trade quotes: builders and tradespeople often quote 'plus VAT' (usually at 13.5% for building work, or 23% for some services), so the real cost includes VAT on top — clarify which rate applies and use this calculator to find the total. Business expenses: identifying the VAT portion of expenses is needed for VAT-registered businesses to reclaim input VAT, the 'remove VAT' calculation. Comparing prices: ensure you compare like with like (both inc-VAT or both ex-VAT). Online and cross-border purchases: VAT generally applies to goods and services consumed in Ireland, including many imports and digital services, though the rules vary by origin and type. The main practical points are that consumer prices already include VAT, the standard rate is 23% with important reduced and zero rates, and the divide-by-(1+rate) method extracts VAT from a gross figure. This calculator covers the common calculations; for the correct rate on a specific item or business VAT obligations, refer to Revenue.ie.