I am advised by Revenue that the VAT rating of goods and services is subject to EU VAT law, with which Irish VAT law must comply. In accordance with VAT legislation, the supply of all goods is generally liable to the standard rate of VAT, currently 23%, including goods manufactured or produced from recycled materials; the acceptance of waste for recycling is regarded as a service of the disposal of waste material and is liable to tax at the reduced rate of 13.5%.
Businesses who are registered for VAT are entitled to recover the VAT they incur on their business inputs used in the purchase or production of goods. VAT is a tax on the value added to a supply and the collection and recovery of VAT takes place at each stage of the chain of supply from manufacturing to retailer.