If you run a business in Ireland, you need to understand when you must register for VAT and how to charge and reclaim it. The thresholds and rates for 2026 are set out below.
| Type of Supply | Threshold |
|---|---|
| Goods | EUR 85,000 |
| Services | EUR 42,500 |
Once your turnover exceeds (or is likely to exceed) the relevant threshold, you must register for VAT with Revenue. You may also register voluntarily if your turnover is below the threshold, which allows you to reclaim VAT on business purchases.
| Rate | Percentage | Applies To |
|---|---|---|
| Standard rate | 23% | Most goods and services |
| Reduced rate | 13.5% | Tourism, hospitality, hairdressing, newspapers, building services |
| Second reduced rate | 9% | Newspapers, periodicals, certain sports facilities |
| Livestock rate | 4.8% | Livestock and greyhounds |
| Flat-rate farmer addition | 4.5% | Unregistered farmers |
Most VAT-registered businesses file bi-monthly returns (January-February, March-April, etc.). Small businesses with turnover under EUR 2 million may opt for annual VAT returns. The return and payment are due by the 23rd of the month following the end of the period (19th for non-ROS filers).
Even if your turnover is below the registration threshold, you can register for VAT voluntarily. The main advantage is that you can reclaim VAT on business purchases (equipment, professional services, vehicle costs, supplies). The disadvantage is that you must charge VAT on your sales, making your prices higher for customers who are not VAT-registered themselves (typically consumers rather than businesses).
Voluntary registration is usually beneficial if most of your customers are VAT-registered businesses (B2B) or if you have significant VAT-inclusive business expenses.
Most VAT-registered businesses file bi-monthly returns covering two-month periods (January-February, March-April, etc.). The return and payment are due by the 23rd of the month following the end of the period (19th for non-ROS filers). Annual VAT returns are available for businesses with turnover under EUR 2 million.
Not registering when you should (even a single month over the threshold triggers the obligation), claiming VAT on expenses that are not fully business-related (personal element of phone, car), not keeping adequate invoices for input claims, and missing the bi-monthly filing deadline (which triggers interest and penalties).
Disclaimer: This information reflects the 2026 tax year. Tax rules change annually following the Budget. Check Revenue.ie for the latest rates and thresholds. This guide is for informational purposes only and does not constitute tax advice.