COUNTRY FACTSHEET
Expense Compliance in Ireland
Country Demographics
VAT rates
The different VAT rates in Ireland are:
| Rate | Type | Goods/services |
| 23% | Standard | Most goods and services. |
| 13.5% | Reduced | Some foods, pharmaceutical items, energy supplies… |
| 9% | Reduced | Some foods, newspapers, admission to cultural events and sports facilities, hairdressing… |
| 4.8% | Reduced | Livestock and agricultural supplies |
| 0% | Zero | Exports, certain food and drink, medicine, and animal feeding stuff, children’s clothing |
For specific items, you can search the VAT rates database on the Revenue website for the VAT rates of individual items.
Per Diem Rates
Per diem is a daily allowance provided to employees to cover expenses such as meals, accommodation, and travel costs when they’re away on business. It simplifies the reimbursement process by offering a fixed amount rather than requiring itemised receipts for each expense.
Rates for assignments within the State:
Overnight allowance
Overnight allowance covers an overnight assignment of up to 24 hours plus any period up to five hours. This must be at least 100km from the employee’s home and their normal place of work.
The rate category depends on the period of an assignment:
- normal rate is for up to 14 nights
- reduced rate covers the next 14 nights
- detention rate covers each of the next 28 nights.
For assignments over 56 nights, an application to Revenue to confirm subsistence is still available must be made.
The period of subsistence at any one location is limited to six months.
Domestic overnight subsistence rates (from 29 January 2025):
| Rate category | Rate |
| Normal rate | €205.53 |
| Reduced rate | €184.98 |
| Detention rate | €102.76 |
Vouched Accommodation Rate (VA) Dublin Only
| Vouched Accommodation (VA) | Accommodation | Meals | |
| VA Rate | Vouched cost of accommodation up to €205.53 | Plus | €46.17 |
Daily allowance
Rates for assignments within the State:
The assignment must be outside eight kilometres of the employee’s home and normal place of work.
In the case of an absence of over 29 hours, you can claim a day and overnight allowance.
Domestic day subsistence rates (from 29 January 2025):
| Period of assignment | Rate |
| Ten hours or more | €46.17 |
| Between five and ten hours | €19.25 |
Rates for assignments outside the State
Short term assignments
These rates can be used for a single temporary assignment of up to six months where your employee is working abroad.
| Period of assignment abroad | % of normal overnight rate |
| First month | 100% |
| Second and third month | 75% |
| Fourth, fifth and sixth month | 50% |
Long term assignment
A long-term assignment will be more than six months.
For the first month of the assignment, you can allow subsistence for the overnight rate. This is to facilitate the employee to find self-catering accommodation.
For the remainder of the assignment, you can allow subsistence costs and a portion of the ten-hour day rate. The subsistence cost can cover the cost of reasonable accommodation. You can allow 50% of the day rate (ten-hour) for the location.
Benefits in Kind
Benefits in kind (BIK) are any non-cash benefit of monetary value that employers provide to employees, also known as notional pay, fringe benefits, or perks.
The benefits have monetary value so they must be treated as taxable income.
Remote Working Relief
You can make a payment of €3.20 per workday to a remote working employee without deducting income tax, pay related social insurance (PRSI), and universal social charge (USC).
This payment is to cover expenses incurred such as broadband, heating and electricity costs.
Required conditions
You can make the payment of €3.20 per workday tax free when:
- there is an agreement between you and your employee that the employee works from home,
- your employee performs substantive duties of the employment at home, and,
- your employee performs their duties for substantial periods at home.
Expenses higher than €3.20 per workday
Your employee’s costs might be higher than €3.20 per workday, and you may repay these expenses. Any amount higher than €3.20 per workday must have tax deducted. Records of the payments made must be retained by you.
Equipment and facilities
You may provide equipment and facilities to a remote working employee for business use such as:
- a computer or laptop,
- a printer,
- a scanner,
- software to allow you to work from home,
- a telephone,
- a mobile and broadband,
- office furniture.
This is not a Benefit-in-Kind where private use by your employee is minimal.
Enhanced Reporting Requirements
The Finance Act 2022 introduced Section 897C which requires employers to report details of certain expenses or benefits made to employees and directors. Reporting the details of these expenses or benefits commenced on 1 January 2024.
Information you need to report
Employers need to report to Revenue when payments are made to an employee or director under the categories listed below:
Remote working daily allowance
When you are paying a Remote Working allowance, you must report the:
- total number of days,
- amount paid,
- date paid.
Travel and subsistence
You must submit the following Travel and subsistence items, including the date paid and amount of each payment, for:
- travel vouched,
- travel unvouched,
- subsistence vouched,
- subsistence unvouched,
- site-based employees (including ‘Country money’),
- emergency travel,
- eating on site,
- advance payment.
Mileage
Mileage allowance in Ireland apply when employees use their own car, motorcycle, or bicycle for business travel. These rates determine the maximum tax-free reimbursement an employer can provide without deducting tax.
Employers who reimburse travel expenses must keep accurate records of journeys (including date, purpose, distance, and vehicle type). Payments above the approved rates are treated as taxable income.
The advisory rate varies based on the vehicle: the type of fuel (petrol, diesel, or LPG) and the engine size.
Cars (rate per kilometre)
Motor travel rates (from 1 September 2022)
| Distance band | Engine capacity up to 1200cc | Engine capacity 1201cc – 1500cc | Engine capacity 1501cc and over |
| Up to 1,500 km (Band 1) | 41.80 cent | 43.40 cent | 51.82 cent |
| 1,501 – 5,500 km (Band 2) | 72.64 cent | 79.18 cent | 90.63 cent |
| 5,501 – 25,000 km (Band 3) | 31.78 cent | 31.79 cent | 39.22 cent |
| 25,001 km and over (Band 4) | 20.56 cent | 23.85 cent | 25.87 cent |
Mileage claims made in respect of journeys carried out in electric vehicles should use the rates applicable to engine capacity 1201cc-1500cc. Please see the above table.
Reduced Motor Travel Rates per kilometre
| Engine Capacity up to 1200cc | Engine Capacity 1201cc to 1500cc | Engine Capacity 1501cc and over |
| 21.23 cent | 23.80 cent | 25.96 cent |
Motorcycles (rate per kilometre)
Motorcycle rates (from 5 March 2009)
| Distance | Engine capacity up to 150cc | Engine capacity 151cc – 250 cc | Engine capacity 251 cc – 600 cc | Engine capacity 601cc and over |
| Up to 6,437 km | 14.48 cent | 20.10 cent | 23.72 cent | 28.59 cent |
| 6,438 km and over | 9.37 cent | 13.31 cent | 15.29 cent | 17.60 cent |
Bicycles
Bicycle rates (from 1 February 2007)
| Rate per km | 8 cent |