Amount (excl. VAT)
€5,000.00
VAT (23%)
€1,150.00
Total Payable
€6,150.00
Invoice Composition
VAT on Invoices in Ireland
If you are VAT-registered (mandatory when turnover exceeds EUR 37,500 for services or EUR 75,000 for goods), you must charge VAT on your invoices. The standard rate is 23%, with reduced rates of 13.5% and 9% for specific goods and services.
VAT Returns
VAT-registered businesses must file bi-monthly VAT returns (VAT3) with Revenue. You remit the difference between VAT charged on sales and VAT paid on business purchases. Annual returns are available for smaller businesses.
Reverse Charge for Services
When supplying services to VAT-registered businesses in other EU countries, the reverse charge mechanism applies. You do not charge Irish VAT, and the customer accounts for VAT in their own country.
Revenue-Aligned: Uses 2025-26 Irish VAT rates. Standard rate 23%, reduced rates 13.5% and 9%.
What to include on your invoices and how VAT affects your billing
What must be on a valid invoice in Ireland?
A valid Irish invoice must include: your name and address, your VAT number (if registered), the customer’s name and address, a unique invoice number, the date of issue, a description of the goods or services, the quantity and unit price, the VAT rate applied, the VAT amount, and the total including VAT. Missing any of these can cause problems with Revenue.
Do I need to charge VAT on my invoices?
Only if you are VAT registered. You must register when your annual turnover exceeds €42,500 for services or €85,000 for goods. Below these thresholds, you are exempt and should not show VAT on your invoices. Once registered, you add 23% (standard rate) to your prices. Some services qualify for reduced rates of 13.5% or 9%.
How do I number my invoices?
Revenue requires invoices to have unique, sequential numbers. You can use any format, such as INV-001, INV-002, or 2025-0001, 2025-0002. The key rule is that numbers must not repeat and should follow a logical sequence. Gaps in numbering can raise questions during a Revenue audit, so keep your system consistent throughout the year.
When should I issue an invoice?
Issue your invoice as soon as the work is done or goods are delivered. For VAT purposes, the tax point is usually the earlier of: the date you issue the invoice or the date you receive payment. If you issue invoices late, you could end up owing VAT for a period you have not yet been paid for. Most businesses invoice on completion or at month-end.
What payment terms should I set?
Common payment terms in Ireland are 30 days from invoice date. For smaller clients or new relationships, 14 days is reasonable. The Late Payment in Commercial Transactions Regulations allow you to charge interest of 8% plus the ECB rate on overdue invoices from business clients, plus a fixed compensation of €40 to €100 per late payment.
How do I invoice a client in another EU country?
For B2B services to clients in other EU countries, the reverse charge mechanism usually applies. You do not charge Irish VAT. Instead, write "Reverse Charge - Article 196 EU VAT Directive" on the invoice. You must also include the client’s VAT number and report the sale on your VIES return. Verify their VAT number on the EU VIES website before invoicing.
Do I need to keep copies of all my invoices?
Yes. Revenue requires you to keep copies of all issued and received invoices for at least 6 years. This applies to both paper and electronic invoices. Digital copies (PDF, scans) are acceptable as long as they are legible and cannot be altered. Keep them organised by date and number so you can find them quickly if Revenue requests them.
Revenue-Aligned: Based on 2025 Revenue rates and thresholds. For personal advice, speak to a qualified tax adviser.
Disclaimer: This calculator provides estimates based on current HMRC rates and thresholds for the 2025/26 tax year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your individual circumstances. Always consult a qualified accountant or tax adviser before making financial decisions. Read our terms
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