Ireland VAT and TOMS Guide for Travel Businesses | Irish Tax Rules Explained

Complete overview of Irish VAT, travel rates, TOMS margin rules, and compliance requirements for inbound and outbound operators.

Detailed VAT and TOMS guide for travel agents, tour operators, and DMCs working in Ireland. Understand VAT rates, place of supply, accommodation rules, event services, and margin calculations. Includes TOMS treatment, compliance obligations, and VAT reclaim guidance.

Ireland – VAT and TOMS for Travel Businesses

Modern VAT system introduced: 1972 (Value-Added Tax Act)
Standard VAT rate: 23 percent
Reduced rates: 13.5 percent, 9 percent, and 0 percent (limited supplies)
Authority: Revenue Commissioners (Irish Revenue)

Ireland is a major destination for leisure travel, cultural tourism, conferences, and inbound group travel. It applies the EU Tour Operator Margin Scheme (TOMS) and operates a relatively strict VAT compliance regime, with increasing digitalisation and data-driven audit activity.

For travel agents, tour operators, and DMCs, the main VAT risks in Ireland relate to correct rate application, principal versus agent treatment, accommodation and hospitality classification, and the correct handling of margin scheme supplies.

VAT treatment of travel and hospitality in Ireland

Ireland applies multiple VAT rates across tourism and hospitality. Accurate classification is essential because rate differences are material and regularly reviewed by Irish Revenue.

Accommodation

Hotel accommodation, guesthouses, B&Bs, hostels, and similar short-term lodging are generally subject to 13.5 percent VAT. This applies to room charges and services directly connected with the stay.

Where accommodation is sold together with additional services, careful analysis is required to determine whether the supply remains accommodation or becomes a composite or mixed supply.

Food and beverage

Restaurant and catering services are normally subject to 13.5 percent VAT.
Alcoholic beverages are subject to 23 percent VAT, creating the need for separation in group packages, events, and hotel board arrangements.

This split is a common audit focus, particularly for incentive travel and corporate hospitality.

Passenger transport

Passenger transport VAT treatment depends on the nature of the transport:

• domestic passenger transport services are commonly exempt or zero rated depending on the service
• international passenger transport is generally zero rated
• transport supplied as part of a broader taxable service may require reclassification

Transport bundled into a tour or event programme must be analysed carefully.

Tours, guides, attractions, and cultural services

VAT treatment varies by activity:

• guided tours and sightseeing services: 23 percent VAT
• commercial excursions and experiences: 23 percent VAT
• museums, galleries, and cultural attractions: often 0 percent or 9 percent, depending on the operator and statutory relief
• entertainment and commercial attractions: 23 percent VAT

Eligibility for reduced or zero rates depends on the legal nature of the provider and the service, not simply on the tourism context.

DMC and event organiser services

DMC fees, itinerary design, event management, incentive planning, staging, and AV services are generally taxed at 23 percent VAT, unless the supply is treated under TOMS as part of a margin scheme supply.

Place of supply rules

Ireland applies EU place-of-supply rules.

Accommodation is taxed where the property is located, meaning Irish hotel stays are always subject to Irish VAT.

Event services, including conferences, exhibitions, and incentive programmes, are taxed where the event takes place, regardless of customer location.

Restaurant and catering services are taxed where physically performed.

Cultural, entertainment, and admission-based services are taxed where they occur.

For foreign travel companies, this means Irish VAT exposure frequently arises when travel or events take place in Ireland, unless TOMS applies.

Ireland and the Tour Operator Margin Scheme (TOMS)

Ireland applies the EU TOMS regime to travel agents and tour operators acting as principal.

When TOMS applies

TOMS applies where the operator:

• buys in travel services such as accommodation, transport, excursions, or guides
• sells those services in its own name
• supplies travel consumed within the EU
• acts as principal rather than intermediary

What is taxed

Only the margin is taxed. VAT incurred on bought-in travel services used in a TOMS supply is not recoverable.

VAT rate on the margin

The margin is taxed at Ireland’s standard VAT rate of 23 percent, regardless of the VAT rates applied to the underlying components.

Non-EU travel

Where travel takes place entirely outside the EU, the margin may qualify for zero rating. Mixed itineraries require allocation between EU and non-EU elements.

Exclusions from TOMS

TOMS does not apply to:

• intermediary or commission-based agency services
• consultancy and planning services without bought-in travel components
• event management fees charged separately
• supplies where VAT is charged and itemised under normal VAT rules

Principal versus agent analysis is a key risk area for inbound and outbound operators working with Ireland.

Invoicing requirements in Ireland

Irish VAT invoices must include:

• supplier name and address
• supplier VAT number
• customer VAT number where applicable
• invoice number and issue date
• date of supply where different
• description of services
• taxable amount, VAT rate, and VAT amount
• reference to special schemes such as TOMS where relevant

Invoices must be retained electronically and made available to Irish Revenue upon request.

Invoices under TOMS

For TOMS supplies:

• VAT must not be shown as recoverable
• the invoice must reference margin scheme treatment
• customers must not be led to believe VAT can be reclaimed

Digital reporting and e-invoicing in Ireland

Ireland does not yet operate a mandatory national real-time invoice reporting system comparable to Italy, Poland, or Hungary. However, Ireland is actively preparing for EU-wide digital VAT reforms under the VAT in the Digital Age (ViDA) programme.

Current position

• no mandatory B2B e-invoicing for domestic transactions
• electronic record-keeping is strongly encouraged
• Revenue increasingly relies on data analytics and targeted audits

Future developments

• mandatory cross-border digital reporting
• structured invoice requirements for certain transactions
• phased implementation aligned with EU ViDA timelines from 2026 onwards

Travel businesses with Irish VAT exposure should plan ahead for structured reporting obligations.

VAT registration for foreign travel companies

A foreign travel company may need to register for Irish VAT if it:

• supplies event services in Ireland
• sells accommodation in Ireland as principal
• provides catering or restaurant services in Ireland
• supplies cultural or entertainment services in Ireland
• has staff or a fixed establishment in Ireland
• supplies non-TOMS services requiring Irish VAT

Reverse charge applies to certain B2B services, but not to accommodation, events, or catering.

Non-EU businesses may need to appoint an Irish VAT agent, depending on circumstances.

VAT reclaim position

VAT incurred in Ireland may be refundable via:

• the EU 8th Directive for EU businesses
• the EU 13th Directive for non-EU businesses

Ireland is relatively efficient in processing refunds, but requires:

• compliant Irish VAT invoices
• correct VAT rates and supplier details
• evidence of business purpose

VAT incurred on costs linked to TOMS supplies remains non-recoverable.

For reclaim mechanics, eligibility, documentation standards, and deadlines, go to VAT Reclaim page.

Antravia helps

Antravia supports travel businesses with:

• Ireland VAT classification and rate analysis
• TOMS applicability and margin modelling
• principal versus agent risk reviews
• VAT registration assessments
• inbound and outbound travel VAT planning
• invoice compliance reviews
• reclaim feasibility analysis
• identifying VAT leakage across Irish travel programmes

Not based in Ireland but looking for Irish VAT Reclaim? Click here

Not sure where to start? Contact Antravia for a free Consultation

Disclaimer:
Content published by Antravia is provided for informational purposes only and reflects research, industry analysis, and our professional perspective. It does not constitute legal, tax, or accounting advice. Regulations vary by jurisdiction, and individual circumstances differ. Readers should seek advice from a qualified professional before making decisions that could affect their business.
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