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Choosing the Right VAT Code: Irish Businesses

Updated 30 October 2026

This article is for Irish businesses set up on the 2026 VAT codes.

Every transaction you enter needs a VAT code. The code tells Aedon how to treat the VAT on your VAT3 return and your Return of Trading Details.

How to read a VAT code

Take TAX-PUR-23 as an example:

  • TAX is the VAT class. It tells Aedon whether you can reclaim the VAT.
  • PUR means a purchase. SAL means a sale, and JNL a journal.
  • 23 is the VAT rate. EX means exempt, and NA means no rate applies.

A few codes have a fourth part, such as EUG for goods bought from the EU.

How to read a 2026 Irish VAT code: VAT class, type, rate and an optional extra part

The four VAT classes

VAT class What it means Can you reclaim the VAT?
TAX, Taxable Sales that carry VAT at 23%, 13.5%, 9% or 0%, and what you buy to make them Yes, in full
EXE, Exempt Sales that are exempt from VAT, such as insurance, finance, health or education No
RES, Residual Overheads that support both taxable and exempt sales In part
OOS, Outside the Scope Grants, wages, transfers and other items that are not sales or purchases No VAT involved

Your everyday codes

Code Use it for Examples
TAX-SAL-23 Sales at 23% Professional services, electronics, adult clothing
TAX-SAL-13.5 Sales at 13.5% Building work, cleaning, hotel accommodation
TAX-SAL-09 Sales at 9% Restaurant food, catering, hairdressing
TAX-SAL-00 Sales at 0% Most food, children’s clothing (under 11s), books
EXE-SAL-EX Exempt sales Insurance, finance, medical services, education
EXE-SAL-EX-INT Interest you receive Bank and deposit interest
OOS-SAL-NA Income that is not a sale Grants with nothing given in return, insurance claims
TAX-SAL-NA-ADJ Correcting sales VAT from an earlier return See Correcting VAT below
TAX-PUR-23 Purchases at 23% Professional fees, IT, office equipment, card terminal rental
TAX-PUR-13.5 Purchases at 13.5% Repairs, cleaning, heating oil
TAX-PUR-09 Purchases at 9% Gas and electricity, catering
TAX-PUR-00 Purchases at 0% Food, books
TAX-PUR-EX Purchases with no VAT because they are exempt Bank charges, insurance, loan interest
TAX-PUR-NA-ADJ Correcting purchase VAT from an earlier return See Correcting VAT below
OOS-PUR-NA Payments that are not for goods or services Government stamp duty on cards, fines
OOS-JNL-NA Journals with no VAT Wages, PAYE, transfers between accounts, dividends

Commonly miscoded items

Item Use Do not use
Bank charges and account fees TAX-PUR-EX TAX-PUR-23 or OOS-JNL-NA
Government stamp duty on cards and cheques OOS-PUR-NA TAX-PUR-EX
Card terminal rental TAX-PUR-23, where the invoice shows VAT TAX-PUR-EX
Card transaction fees TAX-PUR-EX, unless the invoice shows VAT TAX-PUR-23
Interest received on bank deposits EXE-SAL-EX-INT OOS-SAL-NA
Interest paid on loans and overdrafts TAX-PUR-EX OOS-JNL-NA

Extra codes for particular needs

Aedon switches these codes on when your account is set up, if they apply to you. If your business changes, please raise a case and our support team will switch the group on.

Group Switched on if you Example code Read more
International Buy or sell goods or services outside Ireland, including the EU TAX-PUR-23-EUG for goods bought from the EU Reverse Charge VAT: Irish Businesses
Construction Buy or supply construction services as a principal contractor or subcontractor under Relevant Contracts Tax TAX-PUR-13.5-DRC Reverse Charge VAT: Irish Businesses
Agriculture Buy or sell livestock TAX-SAL-4.8
Partial exemption Have exempt income, such as rents, insurance, finance, health or education, other than bank interest RES-PUR-23 for shared costs Apportionment and Recovery Percentages: Irish Businesses

Correcting VAT from an earlier return

  • If a supplier sends a credit note, enter it with the same code as the original invoice.
  • To correct VAT from an earlier return, post a VAT adjustment journal. Use TAX-PUR-NA-ADJ for purchases or TAX-SAL-NA-ADJ for sales.
  • Enter the VAT amount. Enter a net amount only if your purchase or sales total also needs correcting.
  • Record the original VAT period and the reason.

For example, a June invoice had €200 of VAT left off your return. In the next period, post one journal on TAX-PUR-NA-ADJ for €200 of VAT and €0 net.

Speak to your accountant before correcting a large error.

If you are not registered for VAT

You do not file VAT3 returns, and you use three codes:

Code Use it for
OOS-SAL-NA All income
OOS-PUR-NA All purchases, entered at their full cost including any VAT
OOS-JNL-NA Wages, transfers and journals

Useful Revenue links

Need help?

If you are unsure which code to use, ask your accountant. A wrong code can mean reclaiming VAT you are not entitled to.

For help with Aedon.Accounting itself, please raise a case and our support team will help.

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