This free tool enables you to calculate VAT to add or subtract from a price.
ADD VAT
SUBTRACT VAT
Irish Value Added Tax (VAT)
Value added tax or turnover tax - both terms are used synonymously in other countries - is known in Ireland as Value Added Tax, or VAT for short. It is an indirect tax that is borne by the consumer rather than the business. The entrepreneur only collects the VAT for the tax office, but does not pay it himself.
Wat are the VAT rates in Ireland?
The regular Irish VAT rate is 23%. In addition, there are reduced rates of 13.5% (Reduced Rate), 9% (Second Reduced Rate) and 4.8% (Livestock Rate) as well as a special rate for farmers of 5.4% (Flat-rate Compensation for Farmers). No VAT is charged on, for example, books, pharmaceuticals and certain foodstuffs, as well as financial and insurance services. 9% is charged, on newspapers and magazines and in the catering industry, to name only a few examples.
Irish VAT regulations
Not every company is subject to VAT, but there are turnover thresholds (VAT RegistrationThresholds) below which a company can choose whether or not to register for VAT. These are EUR 75,000 for trade in goods and EUR 37,500 for companies providing services. If these amounts are exceeded in the current accounting period, VAT registration must take place.
The issuance of a VAT number, like the issuance of a tax number, is generally not automatic but must be applied for separately in each case, which can be done online. The issuance of an Irish VAT number requires that the company is taxable in Ireland and maintains a permanent establishment in the country. If this is not the case, then the VAT number must be applied for in the country in which a tax liability exists.
How to calculate VAT in Ireland
The Value Added Tax (VAT) is calculated directly on the sale price of the product / service concerned. As an entrepreneur, you must therefore know the valid VAT rate for your activity and mention on your invoice:
- the net sale price with VAT excluded
- the rate of VAT applied
- the amount of VAT that this represents
- the total sale price with all taxes included (VAT included)
|
Calculation of VAT from the net price
The calculation of the VAT amount based on the price excluding VAT is calculated as follows: standard rate: (net price exclusive of VAT / 100) x 123 = total price with VAT reduced rate: (net price exclusive of VAT / 100) x 113.5 = total price with VAT reduced rate: (net price exclusive of VAT / 100) x 109 = total price with VAT reduced rate: (net price exclusive of VAT / 100) x 105.4 = total price with VAT reduced rate: (net price exclusive of VAT / 100) x 104.8 = total price with VAT |
Calculation of VAT from the total price
The calculation of the amount of VAT based on the all inclusive price is as follows: standard rate: total price inclusive of VAT / 1,23 = net price without VAT reduced rate: total price inclusive of VAT / 1,135 = net price without VAT reduced rate: total price inclusive of VAT / 1,09 = net price without VAT reduced rate: total price inclusive of VAT / 1,054 = net price without VAT reduced rate: total price inclusive of VAT / 1,048 = net price without VAT |