Irish VAT law must comply with the EU VAT Directive, which directs that Member States must apply a standard VAT rate of 15% or more. Ireland's standard VAT rate is currently 23% and it is possible under EU VAT law to reduce the rate to 20%.
Reducing the standard rate from 23% to 20% would cost the Exchequer almost €1.4 billion. Further statistics in relation to the cost or yield from changing VAT rates is available in the Pre-Budget 2019 Revenue Commissioners Ready Reckoner, which is available at the following link: https://www.revenue.ie/en/corporate/documents/statistics/ready-reckoner.pdf.