VAT returns can seem complex, but understanding the basics makes the process much simpler. This guide explains how to calculate and file your VAT return in Ireland.
23%
Standard rate
13.5%
Reduced rate
9%
Second reduced
19th
Monthly due date
What is a VAT Return?
A VAT return shows the difference between VAT you've charged (output) and VAT you've paid (input):
VAT Payable/Refundable = Output VAT - Input VAT
Output VAT (Sales)
VAT you charge customers on your sales
Input VAT (Purchases)
VAT you pay on business purchases
Current VAT Rates in Ireland (2025)
| Rate | Applies To |
|---|---|
| 23% | Standard rate - most goods and services |
| 13.5% | Reduced rate - certain services, fuel |
| 9% | Electricity, gas bills, heat pump installation |
| 4.8% | Special agricultural rate - livestock |
| 0% | Food, children's clothing, books, exports |
| Exempt | Financial services, insurance, medical |
Example Calculation
VAT Period Example
Step-by-Step: Completing Your VAT Return
Gather Your Records
All sales invoices, purchase invoices, bank statements, credit notes
Calculate Output VAT
Add up VAT charged on sales, separated by rate (23%, 13.5%, 9%, 0%)
Calculate Input VAT
Add up VAT paid on business purchases. Keep valid VAT invoices
Complete VAT3 Form
T1 (sales VAT), T2 (purchase VAT), T3 (net), T4 (total sales)
Submit and Pay
File through ROS and pay by the 19th of the month following the period
Common VAT Mistakes
Avoid These Errors
- Claiming VAT on exempt purchases
- Missing the filing deadline
- Not keeping proper VAT invoices
- Applying the wrong VAT rate
- Claiming VAT on personal expenses
Rate Change Coming
From 1 July 2026, the VAT rate on food, catering businesses, and hairdressing will reduce to 9% from 13.5%.