Reclaiming VAT on expenses in Ireland might not be the flashiest part of running a business—but for VAT-registered companies, it’s a valuable way to keep costs down and stay compliant with Revenue.
Let’s take a look at the VAT rates, how to reclaim VAT on business expenses in Ireland, and some of the most frequently asked questions.
The VAT rates in Ireland
Here are the Irish VAT rates for 2025/26:
| Rate | Type | Goods and services |
| 23% | Standard rate | Most goods and services, including electronics, vehicles, household items, luxury goods, and professional services. |
| 13.5% | Reduced rate | Items and services like catering (excluding drinks), hot take-away food, hairdressing, certain fuels, repairs, cleaning, photographic supplies, and some art imports. |
| 9% | Second reduced rate | Only applies to items like newspapers, digital publications, and facilities for sporting activities. |
| 4.8% | Livestock rate | Animals that are usually bred for food, like cattle, sheep, and pigs. |
| 0% | Zero | Exports, specific food, medicine, sanitary products, farming supplies, solar panel installations, and children’s clothing and footwear. |
Who can reclaim VAT on expenses in Ireland?
If you run a business in Ireland and you’re registered for VAT, you can usually reclaim the VAT you’ve paid on business-related purchases and expenses.
This includes things like office supplies, equipment, or travel expenses—as long as they’re used to make taxable supplies (that is, goods or services that are subject to VAT).
But there are some exceptions. You can’t reclaim VAT on things used for:
- Exempt supplies (like some financial or medical services)
- Non-business activities (like personal use)
If an expense relates to both business and non-business use, or taxable and exempt supplies, you can only reclaim the portion that’s directly linked to the taxable business activity.
Get the latest insights and product updates, direct to your inbox.
How do you reclaim VAT on expenses in Ireland?
To reclaim VAT on expenses in Ireland, you need to complete a VAT return, known as the VAT 3 form.
This is typically submitted every two months and includes details of the VAT you’ve charged your customers and the VAT you’ve paid on eligible business expenses.
If the VAT you’ve paid on expenses is higher than the VAT you’ve collected, you can claim the difference back as a VAT refund.
The bi-monthly VAT return deadlines
| VAT period | Deadline |
| Jan – Feb | 23 March |
| Mar – Apr | 23 May |
| May – Jun | 23 July |
| Jul – Aug | 23 September |
| Sep – Oct | 23 November |
| Nov – Dec | 23 January |
How to claim VAT on fuel expenses in Ireland
Let’s say you run a small business in Galway, and one of your employees—Pauline—regularly uses a company van to deliver products across the west of Ireland.
Each time she fills up, she brings back a fuel receipt that shows the supplier’s VAT number, the VAT charged, and the date.
Because the van is company-owned and used solely for business, you’re entitled to reclaim the VAT on those fuel costs when submitting your VAT 3 return.
To do this, you’ll need:
- A valid VAT invoice or receipt (a till receipt with VAT details is fine)
- Proof that the vehicle is used only for business
- Accurate records in case Revenue request them
FAQs
Can I reclaim VAT on meals, entertainment, or gifts?
You generally can’t reclaim VAT on meals, entertainment, or gifts, as these are seen as personal or non-business expenses. That said, there are a few exceptions—like when the cost is directly linked to providing taxable goods or services, or if it’s part of a promotional campaign. But in most cases, Revenue takes a strict view, so it’s best to double-check the specifics or speak to a tax advisor before trying to claim anything back.
What happens if I make a mistake on my VAT return?
If you make a mistake on your VAT return, don’t panic—it happens! The key is to fix it as soon as you spot it. If it’s a small error (under €6,000), you can usually correct it in your next VAT return. Bigger mistakes, or ones that result in an underpayment, should be disclosed to Revenue straight away, ideally with an explanation. Being upfront can help reduce any penalties or interest charges, and Revenue tends to look more favourably on businesses that own up early rather than waiting to be caught.
How far back can I claim VAT on past expenses in Ireland?
You can usually claim VAT on past expenses going back up to four years from the end of the relevant VAT period. Just make sure you’ve got the proper documentation to support the claim (like a valid VAT invoice), and that the expense was genuinely for business use.
Are you looking to claim VAT on expenses in Ireland without the usual hassle?
Capture Expense makes it easy. It keeps all your receipts in one place, helps you spot what you can reclaim, and takes the stress out of staying compliant with Revenue.
No more digging through paperwork or second-guessing what qualifies—just a simple, streamlined way to get your VAT back and keep your finances in order. Book a personalised demo today to see Capture Expense in action.
Expense Compliance in Ireland
The information you need to make sure your business complies with Revenue guidelines across policies, tax, reporting, allowances, and more—bridging the gap between in-depth explainers and those that lack the extra context you need!