The five rates side by side
| Rate | Name | Typical examples (Revenue lists) |
|---|---|---|
| 23% | Standard | Furniture, motor vehicles, tyres, batteries, adult clothing, alcohol, soft drinks, solicitor and consultancy fees, most electronics |
| 13.5% | Reduced | Hotel and guesthouse lettings, cinema, theatre and museum admissions, heating oil and other fuels, building services, repairs, cleaning, short-term hire, tour guides |
| 9% | Second reduced | Electricity and gas (to 31 December 2030), restaurant and catering meals, hot takeaway food, hairdressing (both since 1 July 2026), periodicals, commercial gyms and sports facilities |
| 4.8% | Livestock | Livestock in general; horses intended for food or agricultural production |
| 0% | Zero | Most food and drink, oral medicines, books and e-books, newspapers, children’s clothes and shoes (under 11), solar panels for homes, exports |
Need to work out the actual amounts at any of these rates? That is what the VAT calculator Ireland is for: add or remove VAT at any Irish rate in one keystroke. For rates by category see VAT on services and VAT on building work.
What changed on 1 July 2026
On 1 July 2026 catering and restaurant meals, hot takeaway food, hot tea and coffee, and hairdressing moved from 13.5% down to 9%, according to Revenue’s second reduced rate page. Alcohol, soft drinks and bottled water are excluded and stay at 23%. Hotel and guesthouse lettings were not part of the change and remain at 13.5%. Electricity and gas were already at 9%, and Revenue lists that rate as running to 31 December 2030.
Zero-rated is not the same as exempt
Both mean no VAT on the price, but they are 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 is not.
The edge cases people argue about
- Biscuits. Biscuits without chocolate: 13.5%. Biscuits wholly or partly covered in chocolate: 23%. A biscuit assortment stays at 13.5% only if chocolate biscuits are 15% or less of the weight. This is the same category of dispute that produced the UK’s famous Jaffa Cakes case.
- Drinks. Milk is 0%, and so are milk-based drinks where milk is more than half the volume. Soft drinks and minerals are 23%, and stay at 23% even when served with a 9% meal.
- Eat in vs take away. A cold takeaway sandwich is 0%. The same sandwich eaten in the cafe is 9% catering, and a hot takeaway meal is 9% too. 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: furniture, cars, tyres, adult clothing, alcohol, solicitor and consultancy fees.
How much is VAT in Ireland?
Ireland has five VAT rates in 2026: 23% (standard), 13.5% (reduced), 9% (second reduced), 4.8% (livestock) and 0% (zero). Most everyday purchases are at 23%. Electricity, gas and restaurant meals are at 9%. Most food, books, oral medicines and children’s clothes are at 0%.
What is the VAT rate on food in Ireland?
Most food and drink is zero-rated: bread, milk, tea, vegetables, meat. The edge cases are what catch people. Biscuits without chocolate are 13.5%, chocolate-covered biscuits are 23%, soft drinks are 23%, and a meal in a restaurant is 9% because catering is a service.
What is the VAT rate on electricity and gas?
Electricity and gas for heating or lighting are at the 9% second reduced rate. Revenue lists this as running from 1 May 2022 to 31 December 2030. Home heating oil is different: it stays at the 13.5% reduced rate.
What is the VAT rate on restaurants and hairdressing in 2026?
Since 1 July 2026, catering and restaurant meals, hot takeaway food, hot tea and coffee, and hairdressing are at 9%. From 1 September 2023 to 30 June 2026 they were at 13.5%. Alcohol, soft drinks and bottled water sold with a meal stay at 23%.
What is the VAT rate on hotels in Ireland?
Hotel, guesthouse, caravan park and camping site lettings are at the 13.5% reduced rate. Hotels did not move to 9% in July 2026; that change covered food, catering and hairdressing only.
Is there VAT on rent in Ireland?
Residential rent is exempt from VAT, so 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.