VAT Calculator (Add Sales Tax)
Reverse VAT Calculator (Subtract Sales Tax)
What is VAT?
The VAT, or Value-Added Tax, is a value-added tax on purchases.
As a value-added tax, only the final consumer pays the VAT – purchases by business at other stages of production do not pay VAT (they are charged VAT, however, those charges act as a credit against the VAT they charge).
Ireland has a number of different VAT rates. Tax and Customs maintains a VAT rates directory for rate lookup.
Standard VAT – 23% – This rate covers most goods and services.
Reduced Rate – 13.5% – This category contains items such as certain fuels and building services, and repair services, cleaning services.
Second Reduced Rate – 9% – This category contains items such as prepared food (catering, food service, vending machine items), some accommodation, arts & entertainment (cinemas, theatres, museums), amusement parks, newspapers & magazines, hairdressing, and live horses not intended for foodstuffs.
Livestock Rate – 4.8% – This category contains livestock.
Flat-rate addition – 5.4% – This category is not technically a value-added tax. It is for farmers not registered for VAT to add to their invoices that VAT registered customers can then reclaim.
Irish Tax and Customs keeps a list of historical VAT rates.
What goods and services are not charged VAT?
The Irish Tax and Customs Department keeps a record of goods and services not charged VAT.
Popular (but not all) categories are:
- Intra-community supplies within the EU
- Certain food & drink
- Certain books
- Clothing & footwear for children younger than 11
How to calculate VAT (formula)
VAT is calculated by multiplying the VAT rate (23% standard rate in Ireland) by the total pre-tax cost. The cost of VAT is then added to the purchase.
Example: $75 of goods x 23% VAT = $17.25 VAT
$75 of goods + $17.25 VAT = $92.25 total
How to calculate reverse VAT (formula)
To find the VAT from a total, divide the total amount by the VAT rate divided by 100 and plus 1.
Example: $70 total (with VAT) at 23% VAT rate
(23% / 100) + 1 = 0.23 + 1 = 1.23
$70 / 1.23 = $56.91 cost before VAT
VAT refunds (tourism & business)
Non-EU travelers are eligible for a VAT refund. For details see the Irish Citizens Information page on tax-free purchases for non-EU citizens. and Ireland Tax and Customs page on the Retail Export Scheme. Ireland’s second reduced rate (9%) is also intended to lower rates for the tourism industry.
Businesses are eligible to reclaim their costs that include VAT. For more information and how to register see the Ireland Tax and Customs page on reclaiming VAT.