Ireland and UK Vat Comparisone

1. VALUE ADDED TAX
Ireland and UK Vat
Introduction
UK and the Republic of Ireland each impose VAT under the same name. They are 2 separate
systems within the European Union VAT area. Ireland in this context refers solely to the
southern part of the island. It excludes Northern Ireland, which is part of the UK together
with England, Scotland and Wales.
Ireland's VAT is part of the ​European Union Value Added Tax system. It is collected by
VAT-registered traders on almost all goods and services they supply. Each trader in the
chain of supply, from manufacturer to retailer, charges VAT on his sales and pays it to
Revenue, deducting from the payment the VAT paid on purchase.

2. Most goods and services supplied in Ireland are subject to VAT. Goods imported into Ireland
from outside the EU are also subject to VAT – this is charged by Customs at the point where
the goods enter the State
Here are currently different rates of VAT in Ireland.
IRELAND VAT RATES
23% Standard Rate VAT: ​All goods and services other than the following:
13.5% Reduced Rate​: Children's car seats; social housing; renovation and repair of
private dwellings; cleaning in private households; some agricultural supplies; medical and
dental care; collection of domestic waste; minor repairs of bicycles, shoes and leather goods
and household linen; energy for heating and light; moveable property used in the
construction and maintenance of immovable property; supply of immovable property;
routine cleaning of immovable property; services relating to the care of the human body;
certain tourist services; photography services; services supplied by jockeys; works of art
and antiques; short term hire of certain passenger vehicles; driving schools; services
supplied by veterinary surgeons.
9% Reduced Rates: ​Certain foodstuffs; newspapers and periodicals; admission to cultural
events and amusement parks; hotel accommodation; restaurants (excluding all beverages);
use of sports facilities; hairdressing.
4.8% Reduced Rates: Livestock intended for use in the preparation of foodstuffs;
agricultural supplies.
5.2% ​Flat-rate compensation percentage for Farmers.
Zero Rate: A taxable person making zero-rated supplies (for example, a book shop or food
store) is obliged to register for VAT if they exceed the relevant threshold. They are entitled
to a refund (deduction) of the VAT charged on the business purchases, such as shop fittings
and equipment, cash registers or wrapping materials.
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3. Exempt: The goods and services which are exempted from VAT. Exempt goods and services
consist principally of financial, ​medical and ​educational activities as well as admissions to,
and promotion of, certain live theatrical and musical performances, postal services.
UK VAT RATES
Standard 20% ​Most of the goods and services other than the following
Reduced rate 5%: ​Children’s car seats, social housing, domestic electricity, gas and other
domestic energy supplies, energy-saving domestic installations and goods.
Zero rate 0%: ​Social housing, printed books, journals and other printed materials,
renovations to private housing, collections of domestic refuse, household water supplies,
basic foods, pharmaceutical products, certain medical supplies, passenger transport and
children’s clothing.
Exempt goods and services​: insurance, finance and credit, education and training,
Fund raising events by charities, subscriptions to membership organizations, selling, leasing
and letting of commercial land and buildings.
Outside the scope of VAT​: Voluntary donations to charity, Goods & services sold outside
the EU, Goods & services supplied by unregistered supplier Tolls for bridges, tunnels and
roads operated by public authorities
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