VAT & PRSI

VAT & PRSI

VAT Registration Thresholds:
Supply of taxable goods in Ireland.(1) (90% of turnover must be from the sale of goods for this threshold to apply)

 €75,000

Provision of taxable services in Ireland (1)

 €37,500

Note 1.
These thresholds do not apply to traders established outside Ireland who must register irrespective of turnover. There are some exceptions for traders who provide services.

Note 2.
A registration threshold of €41,000 also applies to certain persons acquiring goods in Ireland from other EU member states (other than new means of transport or goods subject to a duty of excise).

Note 3.
A registration threshold of €35,000 applies in relation to “Distance Selling” – i.e. persons supplying certain goods to non-taxable persons in Ireland from other EU member states.

Note 4.
A registration threshold of €nil also applies to certain persons acquiring certain services in Ireland from abroad.

VAT rates:

23% (21% prior to 01-01-2012)

This standard rate applies to all supplies not chargeable at other rates.

Examples – cars, petrol / diesel, telephone services, soft drinks and alcohol, computers and software, consultancy services.

13½%

Examples – heating fuel, electricity, bakery products (excluding bread), property and child car seats

9% (from 01-07-2011)

Examples – supply of food and drink (excluding alcohol), restaurant and catering services, hotel and holiday accomodation, admission to cinemas and theatres, newspapers and brochures.

0%

Examples – exports, certain food and drink, oral human medicine, books, children’s clothing and footwear.
4.8% Examples – Livestock, live greyhounds , hire of horses and the “Flat Rate Addition” .
5.4% from 01-01-2017 (5.2% from 01-01-2013 to 31-12-2013, 4.8% prior to 01-01-2013) Flat-rate compensation percentage for Farmers
Exemptions Examples – Financial, insurance, educational, training, medical, optical, and dental and passenger transport services.

PRSI

PRSI contribution rates from 1 January 2017

Self-employed (on PAYE system only) – PRSI Class S
Non-Cumulative Weekly Earnings Band PRSI Subclasses How Much Of Weekly Earnings Employee %
(See note 2 below)
Employer % Employee & Employer %
Up to €500
S0
All
4.00
0
4.00
More than €500
S1
All
4.00
0
4.00

Note 2: Share-based remuneration may, in certain circumstances, be subject to employee PRSI. Employers PRSI is not chargeable on share based remuneration.

Private And Some Public Sector Employments
Non-Cumulative Weekly Earnings Band PRSI Subclasses How Much Of Weekly Earnings Employee %
( See note 2 below)
Employer % Employee & Employer %
Up to €37.99
JO
ALL
0
0.50
0.50
€38 – €352
AO
ALL
0
8.50
8.50
€352.01 – €376
ALL
4.00
8.50
12.50
€376.01 – €424
ALL
4.00
10.75
14.75
More than €424
A1
ALL
4.00
10.75
14.75

 

Use the following subclasses (A6, A7 and A4) only for existing approved employees under the Employer Job (PRSI) Exemption Scheme.
Non-Cumulative Weekly Earnings Band PRSI Subclasses How Much Of Weekly Earnings Employee %
( See note 2 below)
Employer % Employee & Employer %
Up to €352
A6
ALL
0
0
0
€352.01 – €424
ALL
4.00
0
4.00
More than €424
A4
ALL
4.00
0
4.00

 

Note 3 : PRSI credit applies

Share-based remuneration may in certain circumstances be subject to employee PRSI. Employer’s PRSI is not chargeable on share-based remuneration. From 1 January 2014, the exemption from PRSI applying to employed contributors and occupational pensioners (whether that pension arises from that person’s own employment or the employment of his or her spouse or civil partner) under 66 years, whose only additional income is unearned income, will be abolished. This means that unearned income such as rental income, investment income, dividends and interest on deposits and savings will be liable to PRSI. This income will be chargeable to PRSI at Class K.

Main exemptions and reliefs

2013 & 2014

Employees earning €352 or less per week are exempt from PRSI. The PRSI Free Allowance of €127 per week, where earnings exceed €352 per week, has been abolished effective from 01-01-2013.

Self-employed

Year

Income (€)

PRSI rate
2014

All Income

4%
2013

All Income

4%

The minimum annual PRSI contribution is €500 effective from 01-01-2013.