As one of the first EU member states to implement the Electronic Signatures Directive through the Electronic Commerce Act 2000 (ECA), Ireland has a progressive and facilitative attitude and approach to internet-related issues. It has also implemented the Electronic Commerce Directive. The general legislative approach reflects the government’s stated aim of retaining a light and flexible technology-neutral regulatory regime in this area.

Ecommerce activity has experienced significant growth in Ireland with online spend estimated to have grown by 30-40% in recent years. Market value is forecast to reach at $6. 69 billion in 2025. Strong household internet access (94%) and smartphone usage (90%) are driving Irish online retailing activity. Mobile commerce is becoming especially strong with consumers being particularly willing to make purchases via their smartphones. Travel, hotel accommodation, event ticketing and apparel continue to be the primary goods and services bought online. Recent years have seen significant growth in consumer online activity for Irish food retailers and vendors of electronic goods and services.

According to EuroMonitor International, eCommerce activity in Ireland continues to expand rapidly with mobile internet retailing becoming especially significant. Retailers are launching functional mobile apps while store-based retailers are increasingly utilizing multi-channel options. Click-&-collect services have become more widely available, allowing retailers to maximize retail potential without incurring delivery fees, while the consumer has almost immediate access to purchases without having to plan for deliveries.

Amazon remains the leading player in internet retailing locally. The company opened its Ireland Amazon. ie online store in 2025 following the success of its local eCommerce fulfilment center and two delivery hubs in recent years. These investments represent the company’s first use of direct-hire staff in Ireland to handle online orders. Third-party marketplace retail e-commerce is forecast to play an increasingly important role in overall sales, as more consumers turn to these platforms for convenience and variety.

The Irish government is currently supporting local SMEs in their efforts to develop online sales portals through a package of support measures. Leading U. S. digital and fintech innovators including AWS, Google, MasterCard, Meta, Square (Block), and Stripe are also supporting Irish SMEs with their evolution to online retailing.

In 2015, the European Union launched the Digital Single Market Strategy, of which e-commerce was a priority area. Since then, the Electronic Commerce Directive has provided rules for online services in the European Union, including requiring providers to abide by regulations in the country where they are established (the country of origin) and to meet certain consumer protection rules such as indicating contact details on their website, clearly identifying advertising, and protecting against spam. The Directive also grants exemptions to liability for intermediates that transmit illegal contact by third parties and for unknowingly hosting content. The recently adopted Digital Services Act and Digital Markets Act establish additional rules for online services. The former includes measures to tackle online sales of counterfeit goods and online illegal and harmful content. The latter sets rules for ‘gatekeeper’ online platforms, aiming to curb unfair practices and promote competition.

The International Trade Administration has assembled a wide range of eCommerce resources to assist US businesses develop an understanding of digital trade and implement digital business strategies to success in international markets.

Value Added Tax (VAT)

The EU VAT system is semi-harmonized. While the guidelines are set at the EU level, the implementation of VAT policy is the prerogative of Member States. The EU VAT Directive allows Member States to apply a minimum 15 percent VAT rate. However, they may apply reduced rates for specific goods and services or temporary derogations. Irish VAT rates are available from Irish Revenue.

In addition, the EU applies VAT to sales by non-EU based companies of Electronically Supplied Services (ESS) to EU-based non-business customers. U. S. companies that are covered by the rule must collect and submit VAT to EU tax authorities. Since 2015, all supplies of telecommunications, broadcasting and electronic services are taxable at the place where the customer resides. In the case of businesses this means either the country where it is registered or the country where it has a fixed premise receiving the service. In the case of consumers, it is where they are registered, have their permanent address, or usually reside.

As part of the legislative changes of 2015, the Commission launched the Mini One Stop Shop (MOSS) scheme, the use of which is optional. It is meant to facilitate the sales of ESS from taxable to non-taxable persons (B2C) located in Member States in which the sellers do not have an establishment to account for VAT. In 2021, this service was extended to cover online sales of goods and services other than ESS. For more information, please check the official guide on MOSS issued by the European Commission.  

The mini One Stop Shop scheme allows taxable persons (namely, sellers) to avoid registering in each Member State where the product would be sold. A taxable person who is registered for the mini One Stop Shop in a Member State (the Member State of identification) can electronically submit quarterly mini One Stop Shop VAT returns detailing supplies of electronically supplied services or other sales to non-taxable persons in other Member States (the Member State of consumption), along with the VAT due. On February 12, 2020, the European Union adopted Commission Implementing Regulation (EU) 2020/194 concerning VAT on e-commerce. This regulation provides details for the registration in the VAT One Stop Shop and the Import One Stop Shop (see below).

July 1, 2021 VAT Changes

As of July 1, 2021, changes were introduced to the way that VAT is charged on online sales, whether consumers buy from traders within or outside the European Union. Prior to these changes, goods imported into the European Union valued at less than 22 euro by non-EU companies were exempt from VAT. This exemption has now been lifted so that VAT is charged on all goods entering the European Union – just like for goods sold by EU businesses. (Under the previous system, certain unscrupulous sellers from outside of the EU mislabeled the consignment of goods to benefit from this exemption, which led to an estimated seven billion year in fraud annually).

Previously, e-commerce sellers needed to have a VAT registration in each Member State in which they have a turnover above a certain overall threshold, which varies from Member State to Member State. With these changes, these thresholds were replaced by one common threshold of 10,000 euro above which VAT must be paid in the Member State where the goods are delivered (that threshold already applied for electronic services sold online). An online seller would register for the One Stop Shop to address all of their VAT obligations for their sales across the entire European Union. Once registered, the seller could pay VAT in the One Stop Shop for all of their EU sales via a quarterly declaration, and the One Stop Shop system would transmit that VAT remittance to the respective Member State. Sellers outside of the European Union can also take advantage of this system, and prices should include VAT.

From July 1, 2021, the Mini One Stop Shop (MOSS) became the One-Stop Shop (OSS). The VAT OSS simplifies Value-Added Tax (VAT) obligations for businesses selling goods and services cross border to final consumers in the European Union (EU). Within the OSS, there are two schemes, the Union scheme, and the non-Union scheme.

Union Scheme

The Union scheme simplifies VAT obligations for businesses selling goods and services cross border to final consumers in the EU. Once registered for the Union scheme, a taxable person can:

• declare and pay EU VAT due on supplies made under the scheme in a single electronic quarterly return, and
• communicate with Revenue in relation to these returns, even where the sales are taxable in another Member State.
• The following supplies can be declared in the Union scheme:
• Cross-border supplies of telecommunications, broadcast and electronically supplied (TBE) services to non-taxable persons within the EU (as was previously the case under MOSS).
• All other cross-border supplies of services to non-taxable persons within the EU.
• Intra-Community distance sales of goods
• certain domestic supplies of goods (in specific circumstances).

Union scheme registration

Where a business registers for the Union scheme, it must declare and pay all EU VAT due on all supplies covered by the Union scheme. A taxable person currently registered for the Union scheme under MOSS will not need to register for the expanded Union scheme under OSS. Their registration will migrate to the new OSS. It should be noted that, once registered for the Union scheme, all supplies within the scope of that scheme must be declared through the scheme. This includes registrations which have migrated from MOSS to the OSS.

A supplier established in Ireland can register for the Union scheme through the VAT OSS section in Revenue Online Services (ROS). A non-EU established supplier can register in Ireland for the Union scheme using the non-Union registration portal. Where a non-EU established supplier has already registered for another scheme under the OSS in Ireland, their registration for this scheme can be completed through the VAT OSS section in ROS. A non-EU established supplier can only register in Ireland for the Union scheme where they are making intra-Community distances sales of goods from Ireland. See Union Scheme OSS for in-depth guidance.

Non-Union scheme

The extended non-Union scheme builds on the existing legislative framework established by MOSS. From 1 July 2021, the scope of the non-Union scheme under MOSS is extended to cover all services supplied to non-taxable persons in the EU under the OSS. This scheme can be availed of by suppliers who are not established and have no fixed establishment in the EU.

Non-Union scheme registration

Taxable persons who register for the non-Union scheme will be able to pay EU VAT in a single Member State. This registration can be used in respect of all B2C supplies of services made to consumers across the EU. The use of the non-Union scheme is optional. A taxable person required to be VAT registered in the EU for supplies not covered by the scheme, can still opt to apply the scheme to supplies of B2C services.

A taxable person who opts to register in Ireland for the non-Union scheme must register through the non-Union OSS registration portal. Where a non-EU established supplier has already registered for another scheme under the OSS in Ireland, their registration for this scheme can be completed through the VAT OSS section in Revenue Online Service (ROS). A taxable person currently registered for the non-Union scheme under MOSS will not need to register for the expanded non-Union scheme under OSS. Their registration will automatically migrate to the new OSS. VAT due on Telecommunications, Broadcasting and Electronic (TBE) supplied services can continue to be accounted for using the extended non-Union scheme. It should be noted that, once registered for the non-Union scheme, all supplies within the scope of that scheme must be declared through the scheme. This includes other services supplied B2C by traders whose registrations have migrated from MOSS to the OSS. See non-Union Scheme OSS for detailed guidance.

Data Privacy and Protection

General Data Protection Regulation

The General Data Protection Regulation (GDPR), which governs how personal data of individuals in the European Union may be processed, went into effect on May 25, 2018. The GDPR, which replaces the Data Protection Directive 1995/46, is comprehensive privacy legislation that applies across sectors and to companies of all sizes. Personal data is defined by the GDPR as any information that relates to an identified or identifiable living individual (a “data subject”) such as a name, e-mail address, tax ID number, or online identifier. Processing of data as defined by the Regulation includes actions such as collecting, recording, storing, or transferring data.

A company that is not established in the European Union may need to comply with the Regulation when processing personal data of residents of the European Union, European Economic Area residents (i. e. , Norway, Lichtenstein, and Iceland), and Switzerland, if the company offers goods or services to data subjects in the European Union; or if the company is monitoring data subjects’ behavior, which is taking place within the European Union. The European data protection authorities published Guidelines 3/2018 on the territorial scope of the GDPR (see Article 3), to help companies determine whether they fall within the GDPR’s territorial scope. For example, the mere accessibility of a company’s website in the European Union is insufficient to subject a company to the GDPR, but other evidence of the intent to offer goods or services (such as advertising) to data subjects in the European Union might mean that the Regulation is applicable.

Generally, companies that are not established in the European Union but that are subject to the GDPR must designate in writing an EU representative for purposes of GDPR compliance. There is an exception to this requirement for small scale and occasional processing of non-sensitive data. In 2025, the European Commission confirmed plans to simplify aspects of the GDPR, especially to ease the compliance burden for small and medium-sized enterprises.

Fines in case of non-compliance with GDPR can reach up to four percent of the annual worldwide revenue or €20 million euros—whichever is higher. The European Data Protection Board has released official guidelines to help companies with their compliance process.

Transferring Data Outside of the European Union

The GDPR not only provides for the free flow of personal data within the European Union but also for its protection when it leaves the region’s borders. The Regulation sets out obligations on data controllers (those in charge of deciding what personal data is collected and how or why it is processed) and on data processors (those who act on behalf of the controller) and gives rights to data subjects (as mentioned, the individuals to whom the data relates). These rules were designed to provide a high level of privacy protection for personal data and were complemented by measures to ensure that the protection is maintained when data leaves the region, and whether it is transferred to controllers, processors, or third parties (e. g. , subcontractors). In addition, restrictions on transfers of personal data outside of the European Union specify that such data can only be exported if “adequate protection” is provided.

EU-U. S. Data Privacy Framework

The European Commission is responsible for assessing, in the form of an adequacy decision, whether a country outside the European Union has a legal framework that provides enough protection when transferring personal data from the EU to that country. In March 2023, the EU and the United States established the  EU-U. S. Data Privacy Framework, which governs data transfers from the United States to the EU and vice versa. On July 10, 2023, the European Commission adopted an adequacy decision recognizing the United States as having sufficient protection for EU personal data under the Framework, thereby enacting the Framework, and reestablishing a legal mechanism for transfers of personal data from the EU to the United States.   On September 3, 2025, the General Court of the European Union dismissed a legal challenge to the Framework, confirming that the United States ensures an adequate level of protection for personal data transferred from the EU to organizations in the United States. See the Data Privacy Framework Program website for more information.