VAT in Ireland
We offer our clients a comprehensive service advising on VAT rates in Ireland.
The rates are as follows:
- 23% – standard rate
- 13.5% -reduced rate, especially for services in the agriculture, cleaning and construction sector and car rentals
- 9% – second reduced rate, mainly for the tourism sector and catering industry
- 5.2% -only for the agricultural industry
- 4.8% – livestock rate for farm animals and greyhounds
- 0% – for staple foods and other goods that are deemed as necessary (e.g. children’s clothing)
This enumeration should just give a rough overview. An individual case-by-case examination is always recommended.
VAT on food and drink
| Food and Drink – Examples Summary Table | |||||
|
Type of Food or Drink |
Hotels, Restaurants, Canteens , pubs etc. | Vending Machines | Retail/Wholesale | ‘Take-away’ only
business |
|
| With a meal | Not with a meal | ||||
| Alcohol, bottled waters, soft drinks, sports drinks and vegetable juices | 23% | 23% | 23% | 23% | 23% |
| Bread, butter, sugar etc. (off the shelf produce) | Zero | ||||
| Cakes, biscuits(other than chocolate covered biscuits) | 13.5% | 13.5% | 13.5% | 13.5% | 13.5% |
| Chocolates, Confectionery, Chirps, Ice cream, Biscuits Chocolate covered | 13.5% | 23% | 23% | 23% | 23% |
| Coffee, Tea (Hot) | 13.5% | 13.5% | 13.5% | 13.5% | 13.5% |
| Coffee, Tea(non-drinkable form) | 13.5% | Zero | |||
| Coffee, Tea with confectionery | 13.5% | 13.5% | 13.5% | 13.5% | |
| 23% | 23% | 23% | |||
| Coffee, Tea with scone/cake | 13.5% | 13.5% | 13.5% | 13.5% | |
| Cold Sandwich * | 13.5% | 13.5% | 13.5% | Zero | Zero |
| Hot Sandwich** | 13.5% | 13.5% | 13.5% | 13.5% | 13.5% |
| Fish, Chip (Frozen or uncooked) | Zero | ||||
| Fish, Chips, Burgers (Hot) | 13.5% | 13.5% | 13.5% | 13.5% | 13.5% |
| Fish and Chips with soft drink | 13.5% | 13.5% | 13.5% | 13.5% | |
| 23% | 23% | 23% | 23% | ||
| Fruit juices | 13.5% | 23% | 23% | 23% | 23% |
| Take-away Food (Hot)*** | 13.5% | 13.5% | 13.5% | 13.5% | |
| Take-away Food (Cold)**** | Zero | Zero | Zero | Zero | |
| Vinegar | 13.5% | Zero | Zero | ||
*Cold sandwiches include cold bread, bagels, baguettes, paninis and wrap.
** Hot sandwiches include hot/toasted bread, bagels, baguettes, paninis and wraps and also includes cold bread, bagels, baguettes, paninis and wraps that contain hot fillings.
*** Hot take-away food such as burgers and baguettes which include cold garnish such as coleslaw is liable to VAT at 13.5%
**** See “Cold Food” paragraph above.
Alcohol, bottled waters, soft drinks juice extracted from, or other drinkable products derived from fruit or vegetables and sports drinks are always charged at the standard rate or VAT. However, fruit juices supplied in the course of a meal are liable to VAT at the reduced rate.
Tea includes tea extracted from the tea plant, herbal tea and similar tea products.
(Sources: Revenue: Irish Tax and Customs)
Distance Sales to Germany and other EU countries (B2C)
A registration for VAT in Germany needs to be made for Irish companies whose sales of goods to private customers living in Germany exceeds the annual threshold of €100,000. For sales less than €100,000 per year the company has the option to register for VAT in Germany. If the sales go to other EU Member States the border is usually €35,000 per year.
Telecommunications, Broadcasting and Electronic services (B2C)
VAT also needs to be deducted if electronic services are offered to private customers living in Germany or other EU Member States. The rates are based on the ones applying in the respective Member State.
To make this process easier for the suppliers it is possible to use a “Mini One Stop Shop” (MOSS). For this procedure the company needs to register in one Member State (“Member State of Identification”) and then files all returns regarding telecommunications, broadcasting and electronic services in EU countries together with the VAT due.
VAT in Germany
The standard rate for VAT in Germany is 19%. Companies may be liable to register for VAT in Germany or to pay VAT on expenses, depending on the services offered. In the latter case, the company can apply for a refund. You may also be able to claim expenses that you don’t get back in Ireland such as fuel, meals, car rental and hotel accommodation.
Our services for VAT in Germany include registration, filing returns and applying for refunds. Our VAT refund service is offered at comparatively low fees. We charge a basic fee of 150 € and a success fee of 10%. In cases where no refund is obtained, you will not incur any costs.
Worldwide VAT Refund
Even VAT paid in other countries can be refunded with the assistance of Irish Taxation, as we are part of a global network.