VAT rates in Ireland 2026
Updated: July 2026
Ireland runs five VAT rates plus an exempt category, and the rate follows the exact good or service rather than the industry selling it. This page maps the rates; the VAT calculator does the arithmetic at whichever rate you land on.
The five rates
| Rate | What it covers |
|---|---|
| 23% Standard | The default for most goods and services: electronics, adult clothing, fuel at the pump, professional fees, alcohol, soft drinks and bottled water. |
| 13.5% Reduced | Construction services, hotel and guest accommodation, general repairs and maintenance, cinema admission, short-term car hire. |
| 9% Second reduced | Gas and electricity (extended to 31 December 2030), heat pumps, sporting facilities, newspapers were here before moving to 0%, and, since 1 July 2026, restaurant and catering food and hairdressing. Completed apartment sales also carry 9% from 8 October 2025 to the end of 2030. |
| 4.8% Livestock | Live cattle, sheep, pigs, goats, deer and certain horses. A rate that exists almost nowhere else in Europe. |
| 0% Zero rate | Most basic food, children's clothing and footwear, books and e-books, newspapers, oral medicines, solar panels for private homes, exports. |
| Exempt | Financial, insurance, medical, dental and educational services. No VAT charged, and no input VAT reclaimable. |
The July 2026 change, precisely
From 1 July 2026 the 9% rate applies to food and drink supplied as part of a restaurant, catering or hot takeaway service, including hot tea and coffee, and to hairdressing. The Finance Act excludes alcohol, bottled water, soft drinks, sports drinks and vegetable juices, which stay at 23%. Accommodation stays at 13.5%. The rate change guide has a trader checklist and worked margins.
How the standard rate got here
The standard rate has been 23% since 2012, apart from a temporary cut to 21% between September 2020 and February 2021 as a pandemic measure. Before 2012 it was 21%, and it peaked at 35% in the 1980s. Zero rating on food and children's clothing survives from before EU law froze new zero rates, which is why Ireland has a broader 0% band than most member states.
When you are not sure
Revenue maintains a searchable rates database covering thousands of specific products, and it is the reference that matters in a dispute. For borderline items, biscuits versus cake being the classic, check the database rather than reasoning by analogy. Exempt versus zero-rated matters too: both mean no VAT on the sale, but only zero-rated businesses keep their input deductions.
Open the calculator
Common questions
What is the standard VAT rate in Ireland?
23%, and it has been at that level since 2012 apart from a temporary reduction to 21% between September 2020 and February 2021. It applies to most goods and services not assigned a lower rate.
What VAT rate applies to restaurants in Ireland?
Since 1 July 2026, food and non-alcoholic drinks supplied as part of restaurant, catering or hot takeaway service carry 9%. Alcohol, bottled water, soft drinks, sports drinks and vegetable juices remain at 23%.
What is the difference between zero-rated and exempt?
Both mean no VAT is charged on the sale. A zero-rated business can still reclaim the VAT on its own costs. An exempt business cannot, so exemption is often less generous than it sounds.