Yes, VAT applies, but the good news is that an attic conversion is treated as home renovation work, so it is charged at Ireland’s reduced VAT rate of 13.5% rather than the standard 23%. This applies to the combined labour and materials supplied by a VAT-registered contractor on residential property.
The reduced rate exists specifically for building and construction services on homes, which includes conversions, extensions and renovations. In practice, when a VAT-registered contractor supplies both the work and the materials as part of the job, the whole invoice is charged at 13.5%. This is a meaningful saving compared with the 23% standard rate that applies to many other goods and services.
A few things worth knowing:
- The reduced rate depends on using a VAT-registered contractor. Always confirm the contractor is registered and ask whether quoted prices include VAT.
- If you buy materials yourself directly from a supplier, those materials are generally charged at 23%, so having the contractor supply materials as part of the job is usually more cost-effective.
- Some standalone professional fees, such as those from certain design or engineering services, may be charged differently, so check each invoice.
To avoid confusion, ask for quotes that clearly state whether the figure is inclusive or exclusive of VAT, as noted in our answer on why quotes differ. VAT is separate from grants; there is no build grant, though SEAI supports attic insulation. For a VAT-inclusive estimate on your home, arrange a free assessment.