VAT on a Self-Build in Ireland — 13.5% Labour, 23% Materials, and the Sole Trader Route
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VAT on a self-build in Ireland: 13.5% on labour, 23% on materials (for non-VAT-registered self-builders). For a €500k build, that's €30k–€90k. Register as a sole trader with Revenue under the VAT 13B scheme to reclaim VAT on materials and a portion of VAT on labour. The registration is free and takes about 10 working days. Most Irish self-builders cannot recover VAT in full. The 13B scheme recovers 40–60% of total VAT paid. Talk to your accountant before you register. The right structure depends on your tax band, your income, and whether you intend to claim the VAT refund.
TL;DR
VAT on a self-build in Ireland: 13.5% on labour, 23% on materials (non-VAT-registered). For a €500k build, that's €30k–€90k.
Register as a sole trader with Revenue under the VAT 13B scheme to reclaim VAT on materials and a portion of VAT on labour.
Most Irish self-builders cannot recover VAT in full. The 13B scheme recovers 40–60% of total VAT paid.
When this matters most
You're at the pre-construction phase and need to decide on VAT registration.
When this doesn't apply
You've already registered, or you're using a main contractor who is the VAT-registered entity.
Frequently asked questions
How much is VAT on a self-build in Ireland?
13.5% on labour, 23% on materials (for non-VAT-registered self-builders). For a €500k build: €30k–€90k. Register as a sole trader to reclaim via the VAT 13B scheme.
What is the VAT 13B scheme?
A Revenue scheme that lets a sole-trader self-builder reclaim VAT on materials and a portion of VAT on labour. Most Irish self-builders cannot recover VAT in full; the 13B scheme recovers 40–60%.
Should I register for VAT as a sole trader?
Most Irish self-builders do, to reclaim VAT under the 13B scheme. Registration is free and takes about 10 working days. Talk to your accountant first.
Sources
Revenue Commissioners, VAT on residential property. https://www.revenue.ie/
Frequently asked questions
How much is VAT on a self-build in Ireland?
13.5% on labour, 23% on materials (for non-VAT-registered self-builders). For a €500k build: €30k–€90k. Register as a sole trader to reclaim via the VAT 13B scheme.
What is the VAT 13B scheme?
A Revenue scheme that lets a sole-trader self-builder reclaim VAT on materials and a portion of VAT on labour. Most Irish self-builders cannot recover VAT in full; the 13B scheme recovers 40–60%.
Should I register for VAT as a sole trader?
Most Irish self-builders do, to reclaim VAT under the 13B scheme. Registration is free and takes about 10 working days. Talk to your accountant first.