What VAT Rate Do Electricians Charge in Ireland?

Irish electricians are regularly asked what VAT rate applies to their work - and the answer surprises many customers who assume it must be 23%. This guide gives the answer, with the specific rules for different types of electrical work.

What VAT rate do electricians charge in Ireland?

According to Revenue.ie, electrical installation and repair services on buildings in Ireland are subject to the 13.5% reduced rate. This covers labour and materials together when you supply and fit them as part of the same job - unless the materials cost more than two-thirds of the price, when the whole job is 23% (see below).

The 13.5% rate applies to:

• Electrical installation (rewiring, new circuits, consumer unit replacement)
• Electrical repairs and maintenance
• Lighting installation
• Socket and switch installation
• EV charger installation on residential and commercial properties (check the two-thirds rule - see below)
• Alarm systems and CCTV installation on buildings
• General electrical call-outs

Solar panels have their own rules - see the 0% section below.

When does 23% apply to electricians?

The 23% standard rate applies when you supply electrical goods without installing them. If you sell a consumer unit, cable, or fittings to a customer without carrying out the installation, the supply of those goods is subject to 23%.

If you supply and install in the same job, the 13.5% rate normally applies to the materials and the labour together. The exception is the two-thirds rule: if the VAT-exclusive cost of the goods you use is more than two-thirds of the VAT-exclusive price of the job, the whole job is taxed at 23%.

EV charger installs are where this catches electricians out. Say you price a charger install at €1,200 before VAT and the charger and parts cost you €850. The goods are about 71% of the price - more than two-thirds - so the whole job is 23%, not 13.5%. Check the numbers before you quote.

When does 0% apply to electricians?

There is no zero rate for building new homes in Ireland. Electrical work on a new house is 13.5%, the same as other construction work.

The zero rate electricians do meet is solar. Solar panels supplied and installed on or beside a private home, or a recognised school, are 0% - including the wiring, controller and batteries supplied and fitted under the same contract. On commercial and other buildings, supply-and-fit solar is 13.5%, subject to the two-thirds rule. Solar panels sold without fitting are 23%.

Separately, a temporary 9% rate applies to construction work on qualifying new apartments until 31 December 2030. Check the conditions with your accountant before using it.

VAT rates for common electrical jobs in Ireland - quick reference

Does RCT apply to electricians?

Relevant Contracts Tax (RCT) may apply if you work as a subcontractor under a principal contractor in construction. RCT is a separate withholding tax - not VAT. If RCT applies to your arrangement, your principal deducts it from your payment.

It also changes your VAT. On subcontract work for a principal contractor under RCT, you do not charge VAT - the principal accounts for it (the reverse charge). Your invoice shows your VAT number and the line “VAT on this supply to be accounted for by the principal contractor”, with no VAT rate or VAT amount. The principal pays you the VAT-exclusive amount, and any RCT is worked out on that. When you work directly for a homeowner or other private customer, you charge VAT as normal.

See the VAT for sole traders in Ireland guide for a full explanation of how RCT and VAT interact.

RECI registration and VAT

Registration with RECI (Register of Electrical Contractors of Ireland) is a professional registration - it is separate from your VAT obligations with Revenue. Being RECI-registered does not change your VAT rate or your VAT registration requirements. However, it is a legal requirement for carrying out electrical installation work in Ireland that comes under the Safe Electric scheme.

Do I need to register for VAT as an electrician in Ireland?

You must register once your turnover from services goes over €42,500 in a calendar year. See our guide to the VAT registration threshold in Ireland for the full details.

How to show VAT on an electrician's invoice

Your VAT invoice must show your VAT registration number, your customer's name and address, the date of supply, the net amount, the rate (13.5% for most jobs), the VAT amount, and the gross total. If you also sell goods without fitting them at 23%, show each rate separately with its own amounts.

In PayReady you set your VAT rate once - 13.5% for most electrical work in Ireland - and PayReady works out the VAT on every quote and invoice. It uses one rate per document, so it will not split a job across two rates. Subcontracting for a main contractor? Switch on reverse charge for that job and PayReady leaves the VAT off and adds the wording. See a worked consumer unit quote at 13.5% on the PayReady for electricians page, check a single amount with the VAT calculator, download a free electrician invoice template for Ireland or get early access to PayReady - it's free.

For the complete guide to VAT in Ireland for tradesmen, see VAT for sole traders in Ireland.