The five rates side by side
| Rate | Name | Typical examples |
|---|---|---|
| 23% | Standard | Electronics, adult clothing, furniture, cars, petrol and diesel, alcohol, toys, telecoms, professional fees |
| 13.5% | Reduced | Electricity and gas, home heating fuel, building work, repairs, cleaning, short-term car hire |
| 9% | Second reduced | Restaurant and catering meals, hotels and B&Bs, hairdressing, newspapers and e-papers, gyms and sports facilities |
| 4.8% | Livestock | Cattle, sheep, pigs, goats, deer; horses and greyhounds in certain cases |
| 0% | Zero | Basic food, children’s clothes and shoes, books, oral medicines, exports |
Need to work out the actual amounts at any of these rates? That’s what the VAT calculator is for — add or remove VAT at any Irish rate in one keystroke.
Zero-rated is not the same as exempt
Both mean no VAT on the price, but they’re opposites for the business. A zero-rated seller (a bookshop, a children’s shoe shop) charges 0% but still reclaims VAT on rent, equipment and stock. An exempt business — medical services, education, insurance, residential rent — charges no VAT and reclaims nothing. Exemption sounds like a prize and often isn’t.
The edge cases people argue about
- Biscuits. Plain biscuits and cakes: 0%. Biscuits wholly or partly covered in chocolate: 23%. This is the same category of dispute that produced the UK’s famous Jaffa Cakes case.
- Juice and smoothies. Fruit juices are 23% even though fruit is 0% — sugary drinks lost their zero rating decades ago.
- Eat in vs take away. A takeaway cold sandwich can be 0%, the same sandwich eaten in the café is 9% catering, and the can of Coke beside it is 23% either way. One lunch, three rates.
- Building work. Most construction services are 13.5%, but materials bought on their own are 23% — one reason the builder supplying materials-and-labour quotes differently from the DIY route.
How to check a rate for certain
Revenue publishes a searchable VAT rates database covering thousands of specific goods and services. When an invoice depends on it, check the database or ask your accountant — category logic (“it’s food, so it must be 0%”) is exactly how the biscuit people got caught.
Frequently asked questions
What is the standard VAT rate in Ireland in 2026?
The standard rate is 23%. It applies to most goods and services that are not specifically assigned a reduced, zero or exempt treatment.
What is the VAT rate on food in Ireland?
Basic groceries — bread, milk, tea, vegetables, meat — are zero-rated. But there are famous edge cases: chocolate-covered biscuits are 23%, plain biscuits 0%, and restaurant meals are 9% because eating out is a service, not a grocery.
What is the VAT rate on electricity and gas?
Domestic electricity and gas are at the reduced 13.5% rate, along with home heating fuel. Check revenue.ie for any temporary reductions in force, as these have changed several times in recent years.
Is there VAT on rent in Ireland?
Residential rent is exempt from VAT — tenants never pay VAT on rent for their home. Commercial lettings are exempt by default too, though a landlord can opt to tax a commercial letting.