VAT is a tax on consumer spending. It is collected by VAT-registered traders on their supplies of goods and services to their customers. Generally, each such trader in the chain of supply from manufacturer through to retailer charges VAT on his or her sales and is entitled to deduct from this amount the VAT paid on his or her purchases.
VAT is the most complex of the taxes which you will encounter while doing business in Ireland. This is a general overview of the VAT system in Ireland and should be used as a general guide only. Professional advice should always be obtained on the VAT implications prior to entering into any transaction.