VAT refund in Ireland: A complete guide to tax-free shopping in Ireland for tourists

Are you a British tourist looking for a short getaway adventure? Look no further than Ireland! With its close proximity and easy accessibility, Ireland is the perfect destination for a quick trip. And when it comes to shopping, forget about the big chain stores! Ireland is home to a wide range of small shops that offer unique crafts, fashion items, and homewares that you won't find anywhere else.

However, you may soon realise that VAT in Ireland can be as high as 23%, which means you may end up losing a lot of money. But don't worry! The VAT tax refund system in Ireland supports non-EU residents, including the British but not including residents in Northern Ireland, in claiming back the VAT paid on goods. This guide will help you navigate the process and get the most out of your VAT refund in Ireland.

How much is VAT in Ireland?

Ireland has certain rules for taxes on goods and services just like all other countries in the EU. Ireland still follows the same set of EU rules, but it can also decide on its own tax rate. In Ireland, the standard VAT rate is 23%. This is the rate you will see most often when shopping while you are travelling to the country. You should also look at two other rates - the reduced rate and the second reduced rate - that are used for some items. And, certain goods and services are eligible for zero-rated VAT.

You can find a summary of these rates in the table below:¹⁺²

However, it is worth noting that VAT and the goods applied might change from time to time. You should always refer to the extended list from Revenue.

How much VAT is refunded in Ireland?

Although the standard VAT rate is 23%, tourists are very much unlikely to get a full VAT refund on their purchases.

You might need to work with an intermediary VAT refund agent to get your VAT refund in Ireland. These intermediaries will take a commission of your VAT Tax Refund. Administrative fees or minimum purchase requirements may also apply. Therefore, the actual amount of the VAT tax refund in Ireland may vary based on individual circumstances and the specific refund process used. In most cases, you will only receive a portion of your VAT back.

Who is eligible for tax free shopping in Ireland?

The VAT refund scheme for visitors in Ireland is called the Retail Export Scheme. If you want to be eligible for those scheme, you must meet these conditions:³

• Your residence or usual place of residence is from a non-EU country, including the UK. If you're from Northern Ireland, you will not be qualified for the VAT refund in Ireland.
• You will take the products with you in your personal luggage within three months after the end of the month in which you made the purchase. For example, you purchase your goods during the month of May, then you take it out of Ireland by 31 August.
• The total value on the invoice is at least €75, including VAT.

In addition to the above requirements, residents of the UK might need to submit proof of importation into Great Britain and that the import taxes and duties have been paid there in certain circumstances. The authorities in Great Britain have set a limit on the amount of taxes you can be charged, so you don't need to show proof of import if your purchases are within that limit.

Another important note to take is that you cannot claim a VAT refund for some goods and services due to their nature. The list of non-refundable VAT is:

• Services like hotel accommodation, car rentals, or restaurant meals.
• Goods for equipping, fuelling, and provisioning private means of transportation.

How do you get a VAT refund in Ireland?

The VAT refund program for tourists in Ireland is called the Retail Export Scheme. You can get your VAT refund through either retailer or a refund agent. The process to claim back VAT in Ireland actually begins with your first purchase.

Now, let’s go shopping and get your money back following these steps:

Receive a export voucher

Not all retailers participate in the Retail Export Scheme. There are also some retailers who only work with a VAT refund agent to proceed your VAT refund. Therefore, before making any purchase, it's recommended that you confirm with your retailer whether they offer this service.

After confirming that the retailer can offer this scheme, ask them for an export voucher to process for a VAT refund. The retailer might require you to show:

• Evidence of your place of residence;
• Evidence of your inbound and outbound travel dates; and
• A signed declaration confirming that you are a tourist or traveller and will export the goods under the terms of the scheme.

If you choose to get a VAT refund with an agent in Ireland, it's important to know that some VAT refund agents may give you a card to swipe while shopping. These cards can store information about your qualifying purchase. In that case, it's recommended that you always confirm the specific procedures with your agent before proceeding.

Have the forms stamped

If your goods are below €2,000, you can place your export voucher in the Customs drop-box, typically located in the Departure Terminal. A customs official will stamp your export voucher, turning it into a certification of export. The certification of export will then be returned to the retailer so that they can process the VAT refund for you.

If an agent is helping with your VAT refund, you must give your agent the export vouchers. The refund agent will help you to send the export vouchers to Customs for certification.

For goods valued at €2,000 or more (including VAT), each must be certified for export by a Customs Officer. The certification should be presented along with the following:

• The related export voucher; and
• All sales related documentations provided by the retailer to the traveller (guarantee, certificate of origin etc.)

If you are from the UK, you might also need to provide additional documents to prove that import taxes and duties have been paid. To do this, you can show a receipt from HMRC confirming you've paid the taxes and duties and a Duty Slip issued by the UK Border Force.

Another important note to keep in mind is that Customs Officers have the authority to inspect the goods you have purchased. Make sure to have them accessible while obtaining the certification. If the Customs Officers suspect any export voucher or receipt is invalid, you may receive an unstamped document.

Obtain a VAT refund

Your retailer or refund agent will make a refund to you within 25 working days of certification of export.

This article walks you through the few steps to get your VAT refund before departing from Ireland. The process is simple whether you go with an agent or do it by yourself. However, one last step could make your trip much easier!

If your card's denominated currency (e.g., GBP) differs from the local currency (e.g., EUR), you might encounter a conversion when receiving the VAT refund. The conversion rate, typically with a mark-up, is determined by the card issuer. However, here's the good part: you can bypass additional costs on currency conversion with a Wise debit card. This card lets you hold 40+ currencies, including EUR, maximising your savings for your next adventure.

Please also be aware that tax rates and regulations may change over time. Always verify the information with official sources for the most accurate and up-to-date guidance.

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Sources used for this article:

Sources last checked on 11-Apr-2024.