VAT in Ireland was introduced on November 1st, 1972, replacing turnover tax. It is a consumption tax which applies to goods and services and is based on EU directives.
VAT officially introduced (VAT Act 1972) at a standard rate of 16.37%, replacing previous indirect taxes.
Rates saw volatility, with the standard rate rising, reaching as high as 35% on certain goods by March 1983.
Standard rate stabilized, hovering around 21%–25%, eventually settling at 21% for most of the decade.
The standard rate fluctuated between 20% (2001) and 21.5%.
The standard VAT rate was raised to the current level of 23%.
As a COVID-19 measure, the standard rate was reduced to 21% from September 2020 to February 2021 before returning to 23%.
