EU VAT Rates 2026 Reference Table
| Country | Standard |
|---|
Rates correct as of March 2026. Source: European Commission VAT rates database.
What is VAT?
Value Added Tax (VAT) is a consumption tax applied at each stage of production and distribution. Businesses collect VAT on behalf of the government and can reclaim VAT paid on business expenses.
The EU VAT Directive (2006/112/EC) harmonises VAT rules across member states. Standard rates must be at least 15%, with reduced rates of at least 5% permitted for specific goods and services.
Irish VAT Rates
- Standard rate — 23%: most goods and services, including electronics, clothing, and professional services
- Reduced rate — 13.5%: construction, hospitality, and certain services
- Super-reduced rate — 9%: newspapers, certain food supplements, and tourism-related services
- Zero rate — 0%: most food, children's clothing, books, and oral medicines
- Exempt: financial services, education, healthcare — no VAT charged and input VAT cannot be reclaimed
Adding and Removing VAT
To add VAT to a net price, multiply by (1 + rate). For example, at 23%: Net × 1.23. To remove VAT from a gross price: Gross ÷ 1.23. A common mistake is multiplying the gross price by the VAT rate to find the VAT amount — this gives the wrong answer. The correct method is Gross − (Gross ÷ (1 + rate)).
VAT Registration
Businesses must register for VAT when their taxable turnover exceeds the applicable threshold in their country. In Ireland the threshold is €42,500 for services and €85,000 for goods. Voluntary registration is also available below the threshold, which can be beneficial if your customers are VAT-registered businesses that can reclaim the VAT you charge.
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