Rates & sources2025
Irish VAT rates (Revenue). Standard 23%; reduced 13.5% and 9%.
Source: Revenue.ie — Current VAT rates — figures refreshed at the start of each tax year.
When to use this calculator
- Before pricing a job, setting margin targets, or reviewing hiring costs.
- When you want to test sensitivity around volume, VAT, markup, or overhead changes.
- When you need a practical estimate before committing to a budget or proposal.
- When you are modelling break-even volume and want to see how it shifts as overheads or prices change.
- When you are preparing a quote and need to verify that the margin holds after materials, labour, and VAT are accounted for.
A realistic Ireland planning example
Use these sample inputs as a quick scenario test, then change one variable at a time to compare outcomes.
Amount (€)
1000
VAT / Tax Rate (%)
5%
Amount Includes Tax? (1=Yes, 0=No)
0
After entering these figures, review net, tax and gross together rather than in isolation — each metric tells a different part of the story. Then rerun the tool with one input adjusted to see which variable has the biggest effect on all three outputs before you settle on a plan.
How to read your results
Net
Use this metric to compare scenarios side by side and understand how changes in the key inputs drive the final outcome. If the figure surprises you, isolate one variable at a time and rerun the calculation to identify which assumption is responsible.
Tax
Review this figure alongside your gross income so you can understand the true cost of deductions and plan around any thresholds before the tax year closes. If the figure looks higher than expected, check whether any pension or gift-aid contributions could reduce your taxable income.
Gross
Use this metric to compare scenarios side by side and understand how changes in the key inputs drive the final outcome. If the figure surprises you, isolate one variable at a time and rerun the calculation to identify which assumption is responsible.
Method & assumptionsAuthoritative sources
This calculator handles three common VAT calculations: adding VAT to a net amount, removing VAT from a gross amount, and showing the VAT element within a price. The UK standard rate is 20%, the reduced rate is 5%, and zero-rated goods attract 0% VAT (though they are still taxable supplies, unlike exempt goods).
To add VAT: multiply the net amount by the VAT rate and add to the net. To extract VAT from a gross price at 20%: divide by 6. The calculator applies these formulae automatically. Note that it covers GB VAT only — Northern Ireland has specific rules for goods transactions with the EU. Always verify which rate applies to your specific supply using HMRC guidance, as misapplying VAT rates can result in penalties on inspection.
Common mistakes
- !Using optimistic assumptions without testing a more cautious scenario as well.
- !Comparing outputs from different tools without checking that the inputs match.
- !Treating the result as a final quote instead of a planning estimate.
- !Forgetting to include employer National Insurance contributions when modelling the true cost of a new hire.
- !Using revenue figures in place of gross profit when calculating margin percentage, which produces a misleadingly high result.
What to do next
- Try at least one more scenario with a lower price or higher cost so you can see the margin floor.
- Use the related calculators below to cross-check VAT, payroll, or break-even figures from another angle.
- Open one of the linked guides if you need more context before you finalise a quote or budget.
- If the margin is tighter than expected, identify which single input has the biggest impact and focus any negotiation there first.
- Keep a record of the assumptions behind this estimate so you can revisit and update it when costs or volumes change.
Frequently asked
Use arrow keys to navigate items, Enter or Space to expand/collapse.
End-of-article next steps
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