VAT for Irish Tradespeople: Complete Guide (2026)

VAT is one of the most confusing parts of running a trades business in Ireland. The rules around 13.5% vs 23%, when you need to register, and what must go on a valid invoice trip up tradespeople every year.

This plain-English guide covers everything you need to know about VAT as an Irish tradesperson in 2026. No jargon. No accountant speak. Just the facts you need to invoice correctly and stay on the right side of Revenue.

The Two VAT Rates That Matter for Trades

The key question on every invoice is: am I charging for a service (labour) or goods (materials)? The answer determines the VAT rate.

Which Rate Applies to Your Work?

Do You Need to Register for VAT?

Not everyone needs to charge VAT. In Ireland, VAT registration is mandatory once you exceed these annual turnover thresholds:

• €40,000 per year — for services (including most trades work)
• €80,000 per year — for goods (if you're primarily supplying goods)

If you're below these thresholds, you can choose to register voluntarily. There are sometimes advantages to doing so (you can reclaim VAT on your own purchases), but it also adds paperwork obligations.

If you're not registered:

• You cannot charge VAT on your invoices
• You cannot reclaim VAT on goods/services you buy for the business
• Your invoices do not need to show VAT amounts or rates

What Must Be on a Valid VAT Invoice?

If you're VAT registered, Revenue requires the following on every invoice:

1. The word "Invoice" at the top
2. Your business name and address
3. Your VAT registration number
4. The customer's name and address
5. A unique, sequential invoice number (e.g., INV-0001, INV-0002 — no gaps)
6. The date of issue
7. A description of the goods or services supplied
8. The amount of VAT charged per line (or grouped by rate)
9. The VAT rate applied
10. The total amount payable including VAT

A simplified VAT invoice (for invoices under €100 including VAT) can omit some of these fields, but for most trades work, you'll want a full invoice anyway.

Filing VAT Returns

Once you're VAT registered, you must file VAT returns with Revenue — typically bi-monthly (every two months). This means:

• You report the VAT you charged customers (output VAT)
• You claim back the VAT you paid on business purchases (input VAT)
• You pay the difference to Revenue (or get a refund if you paid more VAT than you collected)

Most tradespeople use an accountant for this, but the key is keeping accurate records — which means proper invoices, not handwritten receipts.

Real Example: A Plumber's VAT Invoice

Here's how a typical plumbing invoice should look for a registered tradesperson:

• Call-out fee: €50 — Labour (13.5% VAT = €6.75) → €56.75
• Boiler service labour: 2 hours @ €65/hr = €130 — Labour (13.5% VAT = €17.55) → €147.55
• Pressure relief valve: €45 — Parts (23% VAT = €10.35) → €55.35
• Total VAT: €34.65
• Invoice Total: €259.65

This is exactly the kind of invoice VoiceInvoice generates automatically when you describe the job by voice.

How VoiceInvoice Handles VAT Automatically

Instead of calculating VAT rates manually for every invoice, VoiceInvoice does it for you:

• Say "3 hours labour at €75" → automatically gets 13.5% VAT applied
• Say "€150 for parts" → automatically gets 23% VAT applied
• Both appear as separate line items on the invoice with the correct rates shown
• The total VAT and total including VAT are calculated and displayed
• Your VAT number appears on every invoice
• Sequential invoice numbers are assigned automatically (no gaps)

The result is a Revenue-compliant VAT invoice generated in 30 seconds from a WhatsApp voice note — with zero mental arithmetic required.

Frequently Asked VAT Questions for Tradespeople

Can I charge 13.5% on the whole job, including parts?

No. When you supply both labour and materials as part of the same job, you must apply the correct rate to each element. Labour at 13.5%, materials at 23%. Charging 13.5% on everything is incorrect and could lead to problems if Revenue audits your records.

What if my customer is VAT registered too?

You still issue a normal VAT invoice showing the VAT. They will reclaim the VAT on their own return. Your obligation is to charge the correct rate and issue the correct invoice.

Do I charge VAT to customers in the UK?

Generally, if you're providing services to UK customers as an Irish VAT-registered business, different rules apply (place of supply rules). Seek professional advice if you regularly work in or invoice UK clients.

What records do I need to keep?

Revenue requires you to keep all records related to your business for at least 6 years. This includes invoices issued and received, bank statements, and contracts. All invoices generated by VoiceInvoice are stored in your account and available for download at any time.