VAT for tradespeople and cleaners in Ireland
When you have to register, which rate applies to your work, how the two-thirds rule works when a job includes materials, and what happens to the VAT you pay on materials.
When you have to register
- Services: you must register once your turnover from services is more than €42,500 a year.
- Goods: €85,000 a year, which also applies if 90% or more of your turnover comes from selling goods.
Most trades and cleaning businesses sell services, so €42,500 is usually the figure to watch. You can also choose to register below the threshold. Your accountant can tell you whether that makes sense for you.
Which rate applies
- 13.5% covers building and building services, and cleaning and maintenance services.
- 23% is the standard rate, which covers most goods, such as a boiler or a fitting sold on its own.
Budget 2026 moved some 13.5% services to 9% from 1 July 2026, including food and catering and hairdressing. Building and cleaning services stayed at 13.5%.
The two-thirds rule
When a job includes both work and materials, Revenue's two-thirds rule decides the rate. If the cost of the goods is more than two-thirds of the total price (both figures excluding VAT), the whole job is charged at the rate for the goods. Otherwise the whole job is charged at the rate for the service.
Example. A boiler replacement is priced at €2,400 excluding VAT, and the boiler and parts cost you €1,800. Two-thirds of €2,400 is €1,600. The goods cost more than that, so the whole job is charged at the goods rate of 23%, not 13.5%.
The rule does not apply to construction services under the principal contractor reverse charge, to construction services between connected parties, or to repairs to motor vehicles or farm machinery.
VAT on the materials you buy
If you are registered, you can generally claim back the VAT you pay on materials and other business purchases. If you are not registered, you cannot claim it back, and you cannot add it to your customer's invoice as VAT. Build it into your price instead.
Need an invoice now? Use our free invoice and quote template. It works with or without VAT, and you can print it or save it as a PDF without signing up.
Questions
What is the VAT threshold for a tradesperson in Ireland?
For services it is €42,500 a year in turnover; for goods it is €85,000. Most trades and cleaning businesses sell services, so €42,500 is usually the one that applies. Check with your accountant or financial adviser for your situation.
Is cleaning charged at 13.5% VAT?
Cleaning and maintenance services are listed at the 13.5% rate. Check with your accountant or financial adviser, especially if a job includes goods.
How does the two-thirds rule work?
If the goods in a job cost more than two-thirds of the total price excluding VAT, the whole job is charged at the goods rate, usually 23%. Otherwise the service rate applies to the whole job.
Ready to get back on the tools?
A 20-minute, no-pressure chat about whether FixOpsFast suits your business.
Book a 20-minute chat