VAT Rates in Ireland 2026: 23%, 13.5%, 9%, 4.8% and 0% Explained

Staxo Team, 2026-09-16

Ireland has five VAT rates plus an exempt category. Most sales fall under the 23% standard rate, but a surprising number of everyday goods and services sit at 13.5%, 9%, 4.8% or 0%. Charging the wrong rate means either overcharging customers or underpaying Revenue, so it pays to know where your products sit.

This guide sets out the rates as published by Revenue for 2026, what falls under each, and the invoicing rules that go with them. Rates change from time to time, so always confirm your own products in Revenue's VAT rates database before you invoice.

The Irish VAT rates in 2026

Revenue also publishes a flat-rate addition of 4.5% for unregistered farmers. It is not a VAT rate you charge; it is an amount farmers add to their prices to compensate for VAT they cannot reclaim.

23%: the standard rate

Revenue's rule is simple: VAT at the standard rate applies to most goods and services unless a lower rate or an exemption applies. If you cannot find your product in the reduced, second reduced, zero or exempt lists, it is almost certainly 23%. Professional services such as consultancy, accounting, legal work, IT and marketing are all standard rated.

13.5%: the reduced rate

Revenue's reduced rate list includes:

• hotel lettings, including guesthouses, caravan parks and camping sites
• admission to cinemas, theatres, certain musical performances, museums, art galleries and exhibitions
• amusement services of the kind supplied in fairgrounds or amusement parks
• admission to an open farm
• certain printed matter such as brochures, leaflets and catalogues
• certain fuels, building services, repair services, cleaning and maintenance services
• short term hire of vehicles and equipment, tour guide services and certain agricultural supplies

Construction and building services are the big one for many small businesses. Most building work on immovable property is 13.5%, though materials sold on their own are 23%.

9%: the second reduced rate

The 9% rate has moved around more than any other. It was applied to hospitality during and after the pandemic, withdrawn, and reintroduced. As published by Revenue in 2026, the second reduced rate covers:

• periodicals and certain e-periodicals
• the provision of sports facilities by commercial operators
• the supply of electricity, and gas used for heating or lighting, from 1 May 2022 to 31 December 2030
• the supply and construction of qualifying apartments and apartment blocks, from 26 November 2025 to 31 December 2030
• from 1 July 2026, catering and restaurant supplies (excluding alcohol, soft drinks and bottled water), hot take-away food, hot tea and coffee, and hairdressing services

Revenue's reduced rate page confirms that catering, restaurant supplies, hot take-away food and hairdressing were at 13.5% from 1 September 2023 to 30 June 2026 before moving to 9%. If you run a cafe, restaurant or salon, check that your till and invoicing changed rate on 1 July 2026 and that your VAT3 for the July to August period reflects both rates correctly.

Because this rate has a history of changing, always check the current position in the Revenue VAT rates database before relying on it.

4.8%: the livestock rate

Revenue states that the livestock rate applies to livestock in general, and to horses that are normally intended for use in the preparation of foodstuffs or in agricultural production. It is a narrow rate that matters mainly to farmers, marts and meat processors.

0%: the zero rate

Zero rated supplies are taxable, but at 0%. Revenue's list includes:

• exports outside the EU
• intra-Community supplies of goods to VAT registered persons in other EU states
• certain food and drink (most basic groceries)
• certain oral medicines, non-oral medicines and sanitary products
• certain books, e-books and audiobooks, newspapers and e-newspapers
• certain animal feed, fertilisers, seeds and plants used to produce food
• supply and installation of solar panels on private homes and recognised schools
• clothing and footwear for children under 11
• supplies to businesses authorised under the zero-rating scheme for qualifying exporters (Section 56)

Zero rated versus exempt: the difference that matters

Both mean the customer pays no VAT. The difference is on your side of the ledger.

• Zero rated supplies are taxable at 0%. You are in the VAT system, you file VAT3 returns, and you can reclaim VAT on your costs. A bakery or an exporter is usually in a repayment position every period.
• Exempt supplies are outside the VAT charge. Revenue's guidance says a business supplying only exempt goods or services is generally not entitled to register for VAT, and if you carry out both exempt and taxable activities you can only reclaim VAT relating to the taxable part.

In practice: a physiotherapist (exempt) pays VAT on equipment and cannot recover it. A children's clothing shop (zero rated) pays VAT on shop fittings and gets it back.

Invoicing rules by rate

Whatever the rate, Revenue requires a VAT invoice to show, among other things:

• the date of issue and a unique sequential number
• the supplier's full name, address and VAT registration number
• the customer's full name and address
• the quantity and nature of the goods, or the extent and nature of the services
• the date of supply
• the VAT exclusive unit price and any discounts
• the breakdown by rate of VAT and the total VAT payable

Where you sell at more than one rate on the same invoice, show each rate on its own line with its own VAT total. For intra-Community supplies, quote the customer's VAT number and add the wording "intra-Community supply of goods". For reverse charge services to EU business customers, note that the reverse charge applies. Failing to comply with invoicing requirements carries a fixed penalty of 4,000 euro.

Frequently asked questions

Is the 9% rate for restaurants permanent?

Revenue's page states the second reduced rate applies to catering, restaurant supplies, hot take-away food and hairdressing from 1 July 2026. No end date is shown at the time of writing. Rates are set in each Finance Act, so check the Revenue database each year.

What rate applies to a takeaway coffee?

Hot tea and coffee are listed under the 9% second reduced rate from 1 July 2026. Cold drinks such as bottled water and soft drinks are excluded and stay at 23%.

Can I reclaim VAT if I only make exempt supplies?

No. If all your supplies are exempt you are generally not entitled to register, and VAT on your costs is not recoverable.

Where do I check the rate for a specific product?

Use the VAT rates database on revenue.ie. It is searchable and browsable A to Z and gives the current rate with the effective date.

Sources

• Revenue: Current VAT rates
• Revenue: Second reduced rate of VAT
• Revenue: Reduced rate of VAT
• Revenue: Zero rate of VAT
• Revenue: Exemption from VAT
• Revenue: What information is required on a VAT invoice?
• Revenue: VAT rates database

Staxo lets you set a VAT rate per product or service once, then applies it on every invoice and carries it through to the right line of your VAT3. See how Staxo helps with your VAT3.