Irish Business, 5 November 2026

VAT on foreign software in Ireland: reverse charge explained

Paying for foreign software from Ireland? How reverse charge / self-accounting works for businesses — and why “no VAT number” is not the same as “consumer”.

Prices last checked: 5 November 2026

Last checked: 5 November 2026. This is general information, not tax advice.

The short answer

When an Irish business buys software or online services for the business from a supplier outside Ireland, Irish VAT rules often require the Irish business to self-account (reverse charge) at the Irish rate, rather than treating the purchase as a simple consumer checkout.

Keep these cases separate:

VAT-registered Irish business (B2B): Usually give the supplier your VAT number; self-account on the VAT3 (T1) and, if fully taxable, reclaim (T2). Often nets to zero but must be recorded.
Irish business without a VAT number: You are not automatically a private consumer. Revenue’s published guidance says non-VAT-registered businesses may have to register and account for VAT on taxable services received from outside the State, and that there is no registration threshold for received services (received services; abroad registration). A supplier charging VAT on the invoice because no Tax ID was provided does not by itself settle that question. Do not assume “pay the 23% on the bill and you’re finished.”
Genuine private consumer (personal use): Electronically supplied services to non-business customers are generally taxed in the customer’s country; VAT on the bill is usually not reclaimable (Your Europe overview).

Always check who you are contracting with on the actual terms and invoice. Some brands that look “US” bill from an Irish company, another EU company, or a non-EU company. The VAT analysis follows the real supplier establishment and invoice, not the brand’s nationality in marketing copy.

Related cost guide: GoHighLevel price in Ireland.

Why reverse charge exists

Most B2B services are taxed where the customer is established. Revenue’s own example: a US company supplies a service to an Irish company; the Irish company self-accounts (place of supply rules).

How to classify a tool (without guessing prices)

Do not rely on this page for any product’s current euro price or checkout UX — those change. Use this checklist instead:

Check	Why it matters
Contracting entity on the terms / invoice	Irish company supplying an Irish customer → typically domestic Irish VAT on the invoice, not “US reverse charge.” Other EU supplier to Irish business → often reverse charge. Non-EU supplier to Irish business → often reverse charge.
Is the purchase for the business?	Business vs private consumer changes the analysis (see short answer).
VAT number on the supplier account	Affects whether the supplier charges VAT; does not by itself redefine a business buyer as a consumer.
Fully taxable vs partly exempt	Affects reclaim.

Example — GoHighLevel: HighLevel, Inc. (US) per HighLevel materials. HighLevel’s Agency Tax ID guide says a valid VAT ID may mean reverse charge / no VAT on future purchases. Trial (affiliate): Start a GoHighLevel trial. Full cost breakdown: GoHighLevel in Ireland.

Example — OpenAI / ChatGPT (entity only, no price claim): OpenAI’s published Europe / business terms state EEA customers contract with OpenAI Ireland Ltd. If your actual invoice shows an Irish supplier for an Irish customer, that points to Irish domestic VAT treatment, not a classic non-EU reverse-charge purchase. If an invoice showed a different contracting entity or a different place of supply fact pattern, the analysis could differ — read the invoice. This page does not assert a blanket “OpenAI Ireland = never reverse charge in every situation.”

Other EU vs non-EU: A supplier established in another EU Member State supplying an Irish business is still generally outside the “Irish domestic invoice” pattern and is commonly a reverse-charge received-services case under the place-of-supply rules — again, confirm on the invoice and Revenue guidance.

If you're VAT-registered: steps

Identify the supplier legal entity (terms or invoice).
Give your Irish VAT number in billing settings where available (Revenue: otherwise you may pay VAT in another Member State).
Convert foreign currency to euro for the return. Which FX rate Revenue expects is not asserted here — confirm with Revenue/adviser; do not assume the card statement rate is automatically correct.
On VAT3: include 23% of the euro value in T1; if used for taxable business, usually the same in T2 when entitled (Revenue worked-example pattern on the received-services page).
Keep the invoice and workings.

Illustration only (not a quote): GoHighLevel Starter $97 ≈ €86.42 at ECB 1.1224 on 2026-11-05 (ECB daily feed). Self-account VAT ≈ €19.88 in T1 / T2 if entitled. Net VAT ≈ €0; subscription ≈ €86.42 before FX fees.

If the supplier charged VAT anyway (for example VAT ID added late): do not assume you can simply reclaim that foreign-charged line as normal Irish input VAT. Ask the supplier about reissue/refund and confirm with Revenue/adviser before claiming.

If you buy as a business but have no VAT number

Ordinary Irish domestic turnover thresholds (for example the services threshold published by Revenue) are about when you must register because of supplies you make. Separately, Revenue’s abroad/received-services material addresses services you receive from outside the State and states there is no registration threshold for received services, and that non-VAT-registered businesses may have to register for that reason.

So:

Supplier VAT on a checkout invoice ≠ automatic proof you are a consumer.
“I’m under the domestic threshold” ≠ automatic proof received-services registration cannot apply.
Practical next step for a real business spend: MyEnquiries or your own adviser with the invoice in hand.

If you're a private consumer

For personal (non-business) use of electronically supplied services, VAT is generally collected for Ireland via the supplier’s consumer rules. You usually cannot reclaim it. Budget for VAT on top of the list price where shown.

Common mistakes

Treating every “US brand” as a US reverse-charge purchase without reading the contracting entity.
Treating “no VAT number” as “I’m a consumer.”
Adding a VAT ID too late and double-counting.
Ignoring usage lines (SMS, AI, API) that follow the same purchase logic.
Ignoring card FX fees (not VAT, still real).

FAQs

Does a Dublin contracting entity mean reverse charge never applies? Not as a slogan. If the invoice is a domestic Irish supply to an Irish customer, reverse charge usually is not the right frame. Always match the invoice and terms. Other facts (different entity, different establishment) can change the answer.

I’m a sole trader — do I just pay the VAT on the Stripe receipt? Only if you are truly a private consumer for that purchase, or after you have confirmed your business received-services position. For business use, see Revenue’s received-services / abroad-registration pages rather than assuming the receipt closes the matter.

Do VAT-registered businesses get the VAT back? Often yes for taxable use under reverse charge (declare and reclaim same return). Partly exempt: maybe only part.

Sources

Last checked: 5 November 2026

General information, not tax or financial advice. Check prices on the vendor's site and VAT with Revenue.ie or your adviser. How prices are checked