VAT in Ireland: the numbers you really need
Registration thresholds, rates and the date that matters for 2026. Briefly explained for business owners who move to Ireland or run a company there.
The rates
The standard rate is 23 per cent, alongside 13.5 and 9 per cent for the reduced categories. For everyday life that means the Irish standard rate sits above the UK's 20 per cent and the 21 per cent of the Netherlands and Belgium, and below the 25 per cent of Denmark and Sweden.
From 1 July 2026, restaurant and catering services and hairdressing moved permanently from 13.5 to 9 per cent (Budget 2026). Alcohol and soft drinks stay at the standard rate even in a restaurant; the hotel room itself is not covered.
The registration thresholds
A business must register from €85,000 of turnover in goods or €42,500 in services, in each case since 1 January 2025. What counts is turnover in the current or the previous calendar year. Mixed businesses use the goods threshold if at least 90 per cent of turnover comes from goods, otherwise the services threshold.
| Item | Value |
|---|---|
| Standard rate | 23 per cent |
| Reduced rate | 13.5 per cent |
| Second reduced rate | 9 per cent |
| Threshold for goods | €85,000 |
| Threshold for services | €42,500 |
Voluntary registration below the thresholds is possible and opens the right to reclaim input VAT.
Source: Revenue on VAT registration thresholds and rates; reduction from 1 July 2026: gov.ie, press release of the Department of Finance, with Revenue guidance; measuring the threshold: S.I. No. 69/2025 and Revenue, "What are the VAT thresholds?". As of: retrieved 25 August 2026, threshold measurement rechecked 23 October 2026.
Two limits of this page, drawn on purpose: for businesses without an Irish establishment the thresholds do not apply, and the obligation to register starts earlier. And the rules for cross-border supplies, from the reverse charge to the One-Stop Shop, fill handbooks of their own; they belong in advice on the specific business model, not in an overview that pretends they fit in three sentences.
If you move with a business or start one in Ireland, check the threshold before your first sale, not at the end of the year: the turnover of the current calendar year already counts. The income tax side of the same decision is on the pages Self-employed in Ireland and The Irish company; the company itself we set up through our company formation.
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The first step is a conversation
Whether and where your business has to register for VAT is something we settle before your first Irish sale.