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What is Ireland VAT for Short-Term Accommodation?

Updated 2026-05-28

Ireland's Value-Added Tax (VAT) for short-term accommodation is a consumption tax levied on the provision of lodging to guests for periods not typically exceeding a few consecutive weeks. This tax applies to various forms of accommodation, including holiday homes, apartments, B&Bs, and guesthouses.

The rate is set by the Irish government and applies to the total amount charged to the guest. It is the responsibility of the property owner or manager to handle VAT obligations once their income surpasses the mandatory registration threshold.

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How it works

A property owner or manager must continuously monitor their rental turnover over a rolling 12-month period. If their income from providing short-term accommodation exceeds the national VAT registration threshold for services, they must register for VAT with the Irish Revenue Commissioners.

Once registered, they are required to charge the applicable VAT rate on top of their rental price and any additional fees. The collected VAT must then be reported and paid to Revenue, usually on a bi-monthly basis, via a VAT 3 return.

VAT-registered hosts can also reclaim VAT paid on eligible business expenses related to the property.

Why it matters

Compliance with Irish VAT regulations is a legal requirement for short-term rental operators exceeding the turnover threshold. Failing to register, charge, and remit VAT can result in significant financial penalties, interest charges on unpaid tax, and potential legal action from the Irish Revenue Commissioners.

Proper VAT management is essential for accurate financial accounting and ensures the business operates lawfully. It also directly influences pricing strategy, as the cost of VAT must be incorporated into the final price presented to guests.

Examples

  • An operator of several city apartments in Dublin sees their total annual rental income surpass the €37,500 threshold, requiring them to register for VAT and begin adding the tax to their nightly rates.
  • A host in Galway who is VAT-registered renovates their cottage's bathroom. They can claim back the VAT paid on the plumber's invoice and the new fixtures, reducing their overall VAT liability for that period.
  • A couple renting out their coastal holiday home in Cork realizes their 12-month rolling turnover is approaching the VAT threshold. They decide to proactively register for VAT to ensure compliance before they are legally obligated.
  • A property manager lists their properties on multiple OTAs. They must ensure their pricing across all channels is inclusive of the correct VAT rate, as the tax is calculated on the total amount paid by the guest, including any service fees the host charges.

Frequently asked questions

What is the VAT registration threshold for short-term rentals in Ireland?+
The VAT registration threshold in Ireland for businesses supplying services, which includes short-term accommodation, is €37,500 in turnover in any continuous 12-month period. If your income from lettings exceeds this amount, you are legally required to register for VAT.
What is the current VAT rate for short-term accommodation in Ireland?+
The VAT rate for tourism-related services, including short-term accommodation, is subject to change. For many years it was 9%, but it was increased to 13.5% in September 2023. Hosts should always verify the current applicable rate on the official Irish Revenue Commissioners website to ensure accuracy.
Do I need to charge VAT if I only use platforms like Airbnb or Vrbo?+
Yes. Your obligation to register for and charge VAT is based on your total turnover from all sources of short-term accommodation. It is not dependent on the platform you use to receive bookings. If your combined income from Airbnb, Vrbo, direct bookings, etc., exceeds the threshold, you must comply with VAT regulations.
Can I reclaim VAT on expenses related to my short-term let?+
Yes, once you are registered for VAT, you are entitled to reclaim VAT on costs incurred for the purpose of your rental business. This can include expenses like cleaning supplies, professional services (e.g., accounting fees), maintenance, repairs, and furnishings, provided you have valid VAT invoices for these expenditures.
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