Per Diem

As of 2025, Ireland’s per diem allowances for business travel are set according to the latest circular issued by the Department of Public Expenditure, NDP Delivery, and Reform. The updated domestic subsistence rates, effective January 29, 2025, include:

• Overnight rate: €205.53
• Reduced rate (for extended stays): €184.98
• Detention rate: €102.76

For day travel:

• 10 hours or more: €46.17
• Between 5 and 10 hours: €19.25

Additionally, a Vouched Accommodation (VA) Rate applies in Dublin for those unable to find suitable lodging within the standard overnight rate. This includes the vouched cost of accommodation up to €205.53, plus an additional €46.17 for meals.

These payments are subject to compliance with regulations, including limits on claimable distances and essential travel monitoring by government departments. More details can be found on the Revenue Ireland website​.

Mileage

The Revenue Commissioners in Ireland provide specific rules for mileage allowances when employees use private vehicles for business travel. Employers can reimburse employees tax-free based on business kilometers traveled using one of the following methods:

1. Civil Service Rates: Employers can use the official Civil Service mileage rates.
2. Alternative Rates: Other rates may be used as long as they do not exceed the Civil Service rates.
3. Reimbursement of Actual Costs: Employers may repay the actual travel expenses incurred, provided they are vouched with receipts and were necessarily incurred for work.

If an employee’s reimbursement exceeds the Civil Service rates, prior approval from Revenue is required. Additionally, if the employer does not reimburse the travel expenses, employees may claim tax relief on eligible expenses themselves.

For more details, you can refer to the Revenue Commissioners’ official guidance on travel and subsistence reimbursement: Revenue.ie​ revenue.ie revenue.ie

https://www.revenue.ie/en/employing-people/documents/claim-car-expenses-capital-allowances.pdf

As of 2025, Ireland’s mileage reimbursement rates for business travel are structured based on engine size and distance traveled. The rates are divided into four bands:

Band 1 (0 – 1,500 km):

• Up to 1200cc: 37.95 cent per km
• 1201cc – 1500cc: 39.86 cent per km
• Over 1500cc: 44.79 cent per km

Band 2 (1,501 – 5,500 km):

• Up to 1200cc: 70.00 cent per km
• 1201cc – 1500cc: 73.21 cent per km
• Over 1500cc: 83.53 cent per km

Band 3 (5,501 – 25,000 km):

• Up to 1200cc: 27.55 cent per km
• 1201cc – 1500cc: 29.03 cent per km
• Over 1500cc: 32.21 cent per km

Band 4 (Over 25,001 km):

• Up to 1200cc: 21.36 cent per km
• 1201cc – 1500cc: 22.23 cent per km
• Over 1500cc: 25.85 cent per km

Additionally, reduced mileage rates apply when travel is not considered official business, with lower reimbursement rates per kilometer. For the most up-to-date details and any further amendments, please refer to the official Irish government circulars at gov.ie​ circulars.gov.ie

Paperless

In Ireland, businesses can maintain digital records for tax and compliance purposes, but they must follow specific rules set by the Revenue Commissioners.

1. General Record-Keeping Requirements:

• Businesses must retain records of expenses, reimbursements, and business transactions for at least six years after the end of the tax year to which they relate.
• Digital records must be complete, unaltered, and uncorrupted throughout their retention period.

2. Electronic Storage Compliance:

• If documents such as invoices, receipts, or statements are received or generated electronically, businesses do not need to retain paper originals.
• A clear audit trail must be maintained for any scanned or electronically stored records, including details of the scanning process, indexing, and any issues encountered.
• The electronic system must be able to reproduce exact copies of stored records upon request by Revenue.

3. Security and Accessibility:

• Records must be easily accessible for inspection by Revenue officials at all reasonable times.
• Businesses must ensure proper security measures to prevent tampering or loss of records.
• Any system updates or changes must preserve access to old records unless explicit approval is obtained from Revenue.

4. Third-Party Record-Keeping:

• If a business uses a third-party provider to store electronic records, the responsibility for compliance remains with the business.
• The business must ensure that the third party meets all Revenue requirements for electronic record-keeping.

For more details, you can refer to Ireland’s Revenue guidelines:
Revenue Record-Keeping Requirements​ Revenue Digital Record Retention Rules​

Meals, Benefits & Allowances

Ireland’s compliance rules for meals, benefits, and allowances for business travel in 2025 are outlined in Circular 04/2025 from the Department of Public Expenditure, NDP Delivery, and Reform.

Here are the key details:

1. Domestic Subsistence Allowances

• Overnight Rate: Increased to €205.53 (previously €195).
• Day Rates:
  • 10 hours or more: €46.17 (up from €42.99).
  • 5 hours but less than 10 hours: €19.25 (up from €17.92).

2. Vouched Accommodation (VA) Rate (Dublin Only):

• If employees cannot find accommodation within the standard rate, they can claim up to €205.53 for accommodation plus an additional €46.17 for meals.
• Employees must provide receipts to claim the VA rate.

3. General Compliance:

• Travel and subsistence payments are subject to existing regulations, including Circular 11/1982, which states that subsistence allowances are not meant to cover all costs but provide partial compensation.
• Only essential business travel should be undertaken, and the number of employees on trips should be minimized.

For further details, you can refer to the full circular here

Standard Domestic Subsistence Rates – effective 29th January 2025

Overnight rates

Day rates

Vouched Accommodation (VA) Dublin only

Sales tax rates

Ireland’s Value-Added Tax (VAT) system for 2025 follows the standard structure of multiple rates depending on the type of goods and services. According to official sources:

• Standard VAT Rate: 23% (applies to most goods and services).
• Reduced Rates:
  • 13.5% for certain services (e.g., tourism, hospitality, and construction).
  • 9% for specific goods and services such as newspapers and e-books.
  • 0% for essential items like food, children’s clothing, and medical products.

Additionally, certain exemptions apply, such as financial, educational, and medical services. Businesses with taxable turnover exceeding a specified threshold must register for VAT. More details on VAT compliance, registration, and exemptions can be found on the Irish government website​.