Complete Guide to Import VAT in Ireland: Rules, Rates, and Reliefs

Core Import Concepts at a Glance

VAT Registration for Importers

If you are a non-resident business selling goods into Ireland, you may need VAT registration for non-established traders in Ireland. This allows you to declare and pay VAT on your imports. Businesses that sell directly to Irish consumers or hold stock in Ireland often need this registration to stay compliant.

VAT on Different Types of Imports

Different rules and rates apply depending on the type of goods imported:

• VAT on imports of goods for personal use: Charged based on the total customs value, including shipping and insurance.
• VAT on imports of goods for business use: Typically reclaimable as input VAT for VAT-registered traders.
• VAT on imports of goods for resale: Paid at import but reclaimable if goods are sold under standard VAT rules.
• VAT on imports of goods for manufacturing: Often reclaimable; specific reliefs may apply to raw materials.
• VAT on imports of goods for export: May be eligible for relief if the goods are re-exported.
• VAT on imports of goods for research and development: Certain exemptions may apply for qualifying projects.
• VAT on imports of goods for educational purposes: Reduced or zero rates may apply for schools and universities.

Special Import Categories

Some categories of goods have unique VAT rules in Ireland:

• Works of art, collectors’ items, and antiques: A reduced VAT rate applies.
• Excise goods: Alcohol, tobacco, and fuel incur both excise duties and VAT.
• Online purchases from outside the EU: Marketplaces may collect VAT at the point of sale through the Import One Stop Shop (IOSS) Ireland system.

Calculating Customs Duty and VAT in Ireland

The Customs Duty and VAT calculation in Ireland is based on the customs value, which includes the price of goods, shipping, and insurance. Importers must account for both customs duties and VAT when determining landed costs.

Reliefs and Deferral Schemes

Ireland offers several reliefs and schemes to reduce the cash-flow impact of import VAT:

• Onward Supply Relief (Procedure 42) Ireland: Allows VAT suspension when goods are imported and immediately supplied to another EU country.
• Import VAT deferral scheme Ireland: Lets registered businesses defer VAT payment until filing their VAT return, improving cash flow.

Compliance and Best Practices

To ensure compliance, keep accurate records of all imports and VAT payments. Using IOSS for low-value goods can simplify VAT obligations for online sellers. Non-EU traders should consider VAT registration in Ireland early to avoid penalties.

Import VAT in Ireland: EU vs Non-EU Goods

As a general rule, goods brought into Ireland from another EU Member State are not subject to Import VAT in Ireland. Since the creation of the EU Single Market, these transactions are treated differently:

• Goods brought from another EU country into Ireland are classed as intra-Community acquisitions.
• Goods supplied from Ireland to other EU Member States are classed as intra-Community supplies.

However, goods imported from outside the EU are subject to VAT on imports from non-EU countries. This Import VAT is calculated at the rates specified by Revenue and is based on the customs value of the goods. The customs value includes the price paid for the goods, shipping and insurance costs, and any applicable Customs Duty and VAT calculation rules.

Who Can Claim Import VAT in Ireland

In Ireland, the ability to reclaim Import VAT depends on whether you are registered for VAT. Traders are required to register for VAT in Ireland if their turnover exceeds the set thresholds:

• €75,000 per annum for the sale of goods
• €37,500 per annum for the provision of services

However, businesses can also register voluntarily, even if they do not meet these thresholds. Only VAT-registered persons can claim back VAT on imports from non-EU countries, as well as VAT paid on domestic purchases.

E-Commerce and Import VAT in Ireland

Since 1 July 2021, all consignments entering Ireland from outside the EU — regardless of their value — are subject to Import VAT in Ireland at the point of importation. This change applies to VAT on online purchases from outside the EU, meaning the previous low-value goods exemption no longer applies.

For e-commerce sellers, platforms, and marketplaces, VAT can be collected at the point of sale using the Import One Stop Shop (IOSS) Ireland system. This simplifies VAT compliance for consignments valued at €150 or less, as sellers registered for IOSS can declare and pay VAT in a single EU return instead of charging it at the border.

Import VAT on Clothing, Footwear, Software, and Vehicles

Specific compliance criteria apply across key product categories:

• Clothing and Footwear: Adult clothing and footwear incur the standard 23% rate, whereas children's items are generally zero-rated.
• Software: Physical media (CDs, memory sticks) are treated as imports of goods subject to standard VAT, whereas purely digital downloads follow electronic service rules.
• Motor Vehicles & GB Imports: Vehicles imported from Great Britain post-Brexit are treated as non-EU imports, incurring customs duty and VAT payable at registration. New vehicles are defined as being 6 months old or less, or having travelled 6,000 km or less.