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VAT increase for Ireland

Spring 2009

Did you know that the Irish rate of VAT has gone in the opposite direction to the UK rate, with an increase from 21% to 21.5% taking effect from 1 December 2008?

The major concern for Irish businesses is that the 6.5% differential with the UK could lead to a boom in the number of customers travelling to the North to buy goods.

UK-based businesses may benefit from the rate differential if they are selling standard rated goods to private individuals or non-VAT registered customers in Ireland. However, these businesses will need to register for VAT in Ireland if the total value of these sales exceeds €35,000 in a calendar year.