VAT Rate in Ireland – New Irish Value Added Tax Rates Explained

The system of VAT rate in Ireland is almost like other EU countries to charge tax on the sales of goods and services. However; the VAT rate of every country is different as it depends on the economic condition and financial policies. Due to COVID-19 Pandemic, many countries have adopted temporary changes in their VAT rate to provide maximum relief to the public who have lost their jobs and businesses due to lockdown.

The current VAT rate of Ireland is 21% which is the new rate that was reduced from 23% to 21% on 1 Sept 2020 till 28 Feb 2020. The standard 23% VAT rate in Ireland is still applicable to certain goods and services that are excluded from the list that we are going to discuss in this article.

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Goods and Services with VAT Rate Reduction in Ireland

After the COVID-19 Pandemic, the Irish government reduced the VAT rate up to 0% for some particular goods and services; we have mentioned a few of them below for your convenience. You can find the complete list on the Ireland Ministry of Finance official website.

  • Pharmaceutical Products.
  • Some particular foodstuff.
  • Social housing.
  • Agriculture supplies.
  • Tourism
  • Water Management.
  • ETC

New VAT rules are always painful and difficult for start-up companies and small businesses due to a lack of stability in their income. However; the vat reduction in several categories of goods and services has also helped these small businesses and start-up companies to continue their operations in Ireland without facing any serious financial challenges.

How to Calculate Irish VAT Rate

Even though there are multiple online Irish vat calculators that you can use without any hassles of inaccurate results or errors. However; you have to make sure that you are following the correct VAT rate percentage because the latest VAT rates of Ireland are quite different from other EU Countries. In other EU countries, one standard vat rate applies to the sale of all goods and services. While in Ireland, the standard VAT rate is 21% but for some particular goods and services, the vat rate varies from 13.5%, 9%, and 4.8% to even 0% in some specific cases.

Conclusion: VAT Rate in Irland

We are pretty confident that you have now understood the current vat Ireland rate that you wanted to know for some particular goods and services. The standard vat rate is 21% right now, but you have to make sure that your business category falls in the standard vat rate otherwise we will be not responsible for any miscalculation using our information.

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