First question: are you VAT registered?
Not registered (turnover under €42,500 for services / €85,000 for goods): you charge no VAT and your invoice says nothing about VAT. Cleaner and cheaper for consumer clients — you’re effectively 23% less expensive than registered competitors.
Registered: every invoice must carry your VAT number and the correct rate per line, with VAT totalled by rate. Our VAT calculator handles one-off sums; the generator does whole invoices.
Which rate goes on the line?
| Rate | Typical invoice lines |
|---|---|
| 23% | Professional services, design, IT, consulting, most goods, equipment supplied |
| 13.5% | Building and construction services, repairs and maintenance, cleaning, fuel |
| 9% | Catering and restaurant supplies, hairdressing, certain tourism services |
| 0% | Exports, certain foods and children’s clothing, intra-EU B2B goods (with conditions) |
The classic tradesperson’s mix: labour at 13.5% and supplied materials at 23% on the same invoice — legitimate and common, as long as the VAT summary shows each rate separately (the “two-thirds rule” can change this for material-heavy jobs; when materials dominate, check with your accountant).
The reverse charge, in one paragraph
Normally the seller charges and remits VAT. Under the reverse charge the buyer accounts for it instead. In Ireland you meet it mostly in construction under RCT (subcontractor → principal contractor) and in cross-border B2B services within the EU. The invoice shows no VAT amount and must carry wording like “VAT on this supply is to be accounted for by the recipient”. Tick the reverse-charge box in the generator and both the zero-VAT treatment and the wording are handled.
Three VAT-on-invoice mistakes Revenue notices
- Charging VAT while unregistered. Collecting VAT you have no right to collect is a serious offence, not a formatting error.
- One blended rate on mixed supplies. Labour and materials at a made-up “average” rate instead of split lines.
- Reverse-charge invoices with VAT on them. If RCT applies, VAT on the invoice is wrong even if the maths is right — the principal accounts for it, not you.
Frequently asked questions
I’m below the VAT threshold — what do I put on invoices?
Nothing about VAT at all: no VAT number, no rate, no VAT line. Just your details, the description, amounts and total. Do not write "VAT 0%" — that implies zero-rating, which is a different thing from not being registered.
Can one invoice have two VAT rates?
Yes, and it must show the net amount and VAT separately for each rate. A café fit-out invoice might carry 13.5% on the building work and 23% on supplied equipment — two lines in the VAT summary.
What is the reverse charge on construction invoices?
Under Relevant Contracts Tax (RCT), a subcontractor invoicing a principal contractor charges no VAT; the principal accounts for it instead. The invoice must state that the recipient accounts for the VAT — our generator adds the wording with one checkbox.
Do I charge Irish VAT to customers in other countries?
B2B services to VAT-registered EU businesses are usually reverse-charged (no Irish VAT, note on the invoice, customer’s VAT number shown). Exports of goods outside the EU are zero-rated. Rules vary by case — check revenue.ie or your accountant for your exact situation.