Blog · Ireland VAT Guide 2025

Ireland VAT Guide 2025

VATAi Team
2025-03-17

As Amazon opens its Ireland marketplace, online sellers now have great new chances to directly engage Irish consumers. However, understanding the VAT rules is important for running a legal and successful business. If you sell things online to Ireland, this guide will walk you through everything you need to know about Ireland VAT.


What are the Irish VAT rates?

Ireland has several VAT rates that apply to different goods and services:

Standard Rate (23%): This rate applies to most goods and services.

Reduced Rate (13.5%): Catering services, fuel, and certain building services fall under this category.

Second Reduced Rate (9%): Tourism-related activities and printed materials like newspapers.


Ireland VAT Number Format and Structure

Ireland VAT numbers have a distinctive format beginning with "IE" followed by 7, 8, or 9 digits, sometimes including letters (e.g., IE1234567A or IE2A12345A). The specific combination will vary depending on the time of registration and the registration tax authority.


Who Needs to Register for Ireland VAT?

You must register for Ireland VAT in these following situations. Failure to comply can lead to financial penalty, store closure and frozen funds:

  1. Non-Irish businesses selling goods to Irish consumers. If your annual sales exceed €10,000, you must register for VAT.
  2. Businesses with warehousing in Ireland must register. This applies to both online and offline sales, regardless of turnover. Simply storing goods in Ireland for sale requires registration.
  3. Non-Irish resident businesses providing e-commerce services to Irish consumers. This businessesmust register for VAT.
  4. Voluntary registration option. Even if your turnover is below the threshold, individuals and businesses can choose to register for Ireland VAT. It can reduce tax burden and improve cash flow.


Advantages of Inventory Storage in Ireland

Reduced storage, fulfillment, and transportation costs;

Lower FBA fees than shipping from continental Europe to Ireland;

Faster delivery to Irish customers, improving customer satisfaction;

Better inventory management for the Irish market specifically.


What are the taxable periods for VAT?

The taxable period is a two-month period (bi-monthly) commencing on the first day of January, March, May, July, September, and November. However, the following situation and taxable periods may be authorized:

  1. annual return, if you are making equal installments by direct debit;
  2. four-monthly returns, if your annual VAT liability is between €3,001 and €14,400;
  3. six-monthly returns, if your annual liability is €3,000 or less.

You must file and pay your VAT by the 19th day of the month following the end of each taxable period.

Find here the official information about reporting periods and deadlines in Ireland.

If you do not pay VAT on time, you will be charged interest. Interest is charged on a daily basis. This begins from the date the VAT payment is due until you pay the amount outstanding.

The rate of interest is 0.0274% per day, or part of a day.


VAT Invoice Requirements in Ireland

According to the Irish VAT rules, taxpayers are required to provide invoices as evidence to support their claims for input VAT deductions. A Ireland VAT invoice must issue within 15 days of the end of the month in which goods or services are supplied. The VAT invoice is the basis for establishing your VAT responsibility on the supply of goods or services. It also enables you to reclaim the VAT.


The VAT invoice must show:

  1. The date of issue.
  2. A unique sequential number.
  3. The supplier’s full name, address and registration number.
  4. The customer's full name and address.
  5. In the case of a reverse charge, the customer’s VAT number and a notation that a ‘reverse charge applies’.
  6. In the case of a intra-Community supply of goods, the customer’s VAT number and a notation that this is an ‘intra-Community supply of goods’.
  7. In the case of triangulation, an explicit reference to EC triangulation simplification and an indication that the person in receipt of the goods is liable to account for the VAT due on the supply.
  8. The quantity and nature of the goods supplied or the extent and nature of the services rendered.
  9. The VAT exclusive unit price.
  10. The payment received net of VAT.
  11. The discounts or price reductions.
  12. The breakdown by the rate of VAT.
  13. The total VAT payable in respect of the supply.
  14. The date on which the goods or services were supplied.
  15. Where a payment is made prior to a supply, the date on which the payment on account was made. This is the case only if that date differs from the date of issue of the invoice.
  16. The full name and address and the Member State's VAT number of the tax representative. This is the case where a tax representative is liable to pay the VAT in another Member State.
  17. If the invoice is issued in a foreign currency, the EUR amount should also be indicated.
  18. VAT invoices where the reverse charge applies
  19. In the case of the supply of goods or services for which VAT is accounted for under the reverse charge mechanism, the VAT payable is not displayed on the invoice issued.


Reclaim VAT in Ireland

If you are making taxable supplies of goods and services or are engaged in qualifying activities, you can reclaim VAT. To reclaim VAT you must make a claim through your VAT 3 return.

You may not reclaim VAT on goods or services used for making exempt supplies or for your non-business activities. Certain costs may relate to both taxable and non-taxable activities. You can reclaim the portion of the VAT that relates to your taxable supplies.

The time limit for claiming a repayment of VAT is four years.


What VAT can you reclaim?

You may reclaim the VAT charged on goods and services used for the purposes of your taxable supplies. You need to keep records to support your claim, including a valid VAT invoice or relevant Customs receipt.


Manage your Ireland VAT compliance with VATAi

As Amazon's Ireland marketplace launched, building correct VAT compliance at your business’s beginning is important, this approach will help your business grow sustainably and avoid unexpected tax problems. Whether you are joining the EU market for the first time via Ireland or expanding from current European business operations, understanding and properly managing VAT obligations is fundamental to your success.

Would you like to discuss how our team can support your Ireland VAT compliance as you explore this new marketplace opportunity? Contact VATAi today for a free consultation!