VAT rates in Ireland
Ireland imposes Value Added Tax (VAT) at different rates as follows for various goods and services.
1. Standard rate - 23%
The standard VAT rate is applicable to all taxable goods and services in Ireland, except when a specific measure allows for a reduced rate.
2. Reduced rate - 13.5%
Certain foodstuffs; tourism services; cut flowers and plants for decorative use; some books; admission to amusement parks; hotel accommodation; restaurant and catering (excluding beverages); hairdressing; take-away food; bars and cafes.
3. Reduced rate - 9%
Certain foodstuffs; newspapers and periodicals; admission to cultural events; use of sports facilities; hairdressing; e-books and digital publications.
3. Reduced rate - 4.8%
Livestock intended for use in the preparation of foodstuffs.
Source: https://www.revenue.ie/en/vat/vat-rates/search-vat-rates/current-vat-rates.aspx
Daily allowances in Ireland
Employees of companies travelling for business may be entitled to per diem allowances, as outlined below:
Overnight Rates
| Rate category | Rate (January 29th, 2025) |
| Normal rate | €205.53 |
| Reduced rate | €184.98 |
| Detention rate | €102.76 |
Domestic Daily Allowance
The rate category depends on the period of an assignment:
-
normal rate is for up to 14 nights
-
reduced rate covers the next 14 nights
-
detention rate covers each of the next 28 nights.
| Period of assignment |
Rate (January 29th, 2025) |
| 10 hours or more | €46.17 |
| Between 5 and 10 hours | €19.25 |
You can only claim both a day and overnight allowance if you work five hours or more the next day.
Foreign daily allowance
These rates can be used for a single temporary assignment of up to six months where your employee is working abroad.
| Period of assignment abroad | % of normal overnight rate |
| First month | 100% |
| Second and third month | 75% |
| Fourth, fifth and sixth month | 50% |
Source: ttps://assets.gov.ie/16089/250708db830e490e8037fb948dedb691.pdf
Mileage allowances in Ireland
Motor Travel Rates per kilometer applied since 1 September 2022:
| Distance bands |
Engine Capacity up to 1200cc |
Engine Capacity 1201cc - 1500cc | Engine Capacity 1501cc and over | |
| Band 1 | 0 – 1,500 km | ¢41.80 | ¢43.40 | ¢51.82 |
| Band 2 | 1,501 – 5,500 km | ¢72.64 | ¢79.18 | ¢90.63 |
| Band 3 | 5,501 - 25,000 km | ¢31.78 | ¢31.79 | ¢39.22 |
| Band 4 | 25,001 km and over | ¢20.56 | ¢23.85 | ¢25.87 |
Motorcycle rates (from 5 March 2009):
| Distance | Engine capacity up to 150cc | Engine capacity 151cc - 250cc | Engine capacity 251cc - 600cc | Engine capacity 601cc and over |
| Up to 6,437 km | ¢14.48 | ¢20.10 | ¢23.72 | ¢28.59 |
| 6,438 km and over | ¢9.37 | ¢13.31 | ¢15.29 | ¢17.60 |
Bicycle rate (from 1 February 2007) – 8 cents per km.
Electronic archiving and retention period in Ireland
In Ireland you can digitse paper invoices and destroy the originals, provided you adhere to specific legal and regulatory requirements:
- Retention period: invoices must be retained for a minimum of six years after the end of the financial year in which they were issued.
- Authenticity and Accessibility: using secure methods and ensuring the electronic format is accessible and readable
Storing digitized invoices outside Ireland is permissible under certain conditions.
Source: Irish Tax Law
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