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

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:

• VAT on imports of works of art, collectors’ items, and antiques – A reduced VAT rate applies.
• VAT on imports of excise goods – Alcohol, tobacco, and fuel incur both excise duties and VAT.
• VAT on 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

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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
• Any applicable Customs Duty and VAT calculation in Ireland rules

Importers should be aware that different VAT rates can apply depending on the type of goods, with potential reliefs available under schemes such as the Import VAT deferral scheme Ireland or Onward Supply Relief (Procedure 42) Ireland.

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. This means:

• VAT on imports of goods for business use can usually be reclaimed if you are VAT-registered.
• Non-registered traders and private individuals cannot claim back Import VAT, whether it relates to goods for resale, manufacturing, or other purposes.

For non-resident traders, VAT registration for non-established traders in Ireland may be required to recover VAT on imports. This is particularly relevant for businesses holding stock in Ireland, selling directly to Irish consumers, or using the Import One Stop Shop (IOSS) Ireland for online sales.

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.

Businesses selling into Ireland should ensure correct Customs Duty and VAT calculation in Ireland, keep accurate records, and consider VAT registration for non-established traders in Ireland if they store goods locally or sell directly to Irish consumers.

Import VAT in Ireland on Clothing and Footwear

When importing clothing and footwear into Ireland, the applicable VAT rate depends on the type of goods:

• Adult clothing and adult footwear – Subject to Import VAT in Ireland at the standard rate of 23%.
• Children’s clothing and children’s footwear – Generally zero-rated, meaning no VAT is charged at import.

These rules apply whether goods are brought in for personal use, business use, resale, or manufacturing. Importers should also factor in Customs Duty and VAT calculation in Ireland when determining the total landed cost, especially when sourcing from non-EU countries.

Businesses importing clothing for resale can reclaim VAT on imports from non-EU countries if they are VAT-registered in Ireland. For online sellers, VAT obligations can be simplified through the Import One Stop Shop (IOSS) Ireland when selling directly to Irish consumers.

Import VAT in Ireland on Software

When importing software into Ireland, the VAT treatment depends on the nature and delivery method of the product. Standard software supplied on a physical medium — such as a CD, DVD, or memory stick — is treated as an import of goods. This means Import VAT in Ireland is payable at the applicable rate upon entry.

If the software is sourced from non-EU countries, importers must follow the standard Customs Duty and VAT calculation in Ireland, taking into account the customs value, shipping, and insurance costs. For VAT-registered traders, this VAT can usually be reclaimed, provided the software is for business use.

Businesses selling physical software products into Ireland may also need VAT registration for non-established traders in Ireland, especially if they hold stock locally or sell directly to Irish consumers. For e-commerce transactions, the Import One Stop Shop (IOSS) Ireland may apply in certain cases.

Import VAT in Ireland on Motor Vehicles

Motor vehicles brought into Ireland are subject to specific VAT rules depending on their origin and condition. New vehicles imported from any EU country, including Northern Ireland (NI), are liable for Value-Added Tax (VAT) in Ireland.

A vehicle is classed as new if:

• It is 6 months old or less, or
• It has travelled 6,000 km or less

For new vehicles imported from within the EU, Import VAT in Ireland is generally payable at the point of registration with the relevant Irish authorities.

If the vehicle is sourced from a non-EU country, both Customs Duty and VAT calculation in Ireland will apply, with VAT charged based on the customs value, including purchase price, shipping, and insurance. For VAT-registered traders, this VAT may be reclaimable if the vehicle is imported for business use.

Special rules also apply when importing motor vehicles for resale, manufacturing modifications, or export, and certain reliefs may be available under schemes like the Onward Supply Relief (Procedure 42) Ireland.

Import VAT in Ireland on Vehicles from Great Britain (GB)

Since 1 January 2021, following Brexit, the import of a vehicle from Great Britain (GB) to Ireland is treated the same as an import from a non-European Union (EU) country. This means such imports are subject to:

• Import VAT in Ireland at the applicable rate
• Customs Duty and VAT calculation in Ireland, based on the vehicle’s customs value, which includes the purchase price, shipping, and insurance

For vehicles imported from GB, Import VAT is generally payable at the time of importation, and Customs Duty may also apply depending on the vehicle type, origin, and trade agreements.

If the vehicle is for business use and the importer is VAT-registered, this VAT may be reclaimable. For vehicles intended for resale, manufacturing modifications, or export, certain reliefs such as the Onward Supply Relief (Procedure 42) Ireland might be available.

What’s the Next Step?

If you need guidance on Import VAT in Ireland, including VAT on imports from non-EU countries, Customs Duty and VAT calculation in Ireland, or relief schemes such as the Import VAT deferral scheme Ireland and Onward Supply Relief (Procedure 42) Ireland, our expert team is here to help.

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