A return to normal trading activity and strong inflation leading to increased prices were the two main drivers of a 22% increase in VAT receipts last year.
Data released by Revenue shows that VAT made up 23% of total tax receipts in 2022, or €18.8 billion.
The largest portion of VAT, known as Internal VAT, which is collected by traders on the value of goods and services supplied to their customers, made up 89.5% of the total VAT returns.
8.2% came from imported goods from third countries, with the remaining receipts arising from the VAT One Stop Shop scheme.
Wholesale and retail trade was the sector that made up the largest proportion of the VAT take, accounting for €7.7 billion, up 17% year on year.
The next largest contributor was professional, scientific and technical services at €2.5 billion, up 25%.
Manufacturing recorded a 29% increase in VAT returns to €1.5 billion, while accommodation and food services rose 156% as the sector recovered from the pandemic, adding €741 million to the total VAT pile.
Large corporates made up just 2% of VAT traders, but 39% of payments and 44% of repayments.
Over 68,000 individual businesses were availing of Revenue's Debt Warehousing as at the end of 2022, with €2.4 billion of tax debt warehoused, including €1.1 billion of VAT.
Of this, €0.2 billion relates to VAT liabilities due in 2022.
