Sage or Xero for Irish Trades? An Honest Comparison for 2026

Updated October 2026 · 13 min read

General guidance for Irish trades businesses, not tax or accounting advice. Prices change; every figure here was checked on Sage's and Xero's own Irish pages on 1 October 2026. Talk to your accountant before you switch packages.

Prices and features verified against official sources, October 2026.

Quick answer: for most Irish trades, our pick is Sage Accounting. It's priced in euro, has the Irish VAT rates and RCT built in, sells its own Irish payroll, and has phone support. Pick Xero instead if your accountant works in Xero, if you want unlimited users and quotes on every plan, or if you rely on its large app store. Neither one files to Revenue for you.

We build JobFlow, Irish job management software that syncs two way with both Sage and Xero, so we've no commercial reason to prefer either; our pick is about fit for Irish trades. Building those two connections also taught us a few things about each one that you won't find on their websites.

At a glance

From Sage's and Xero's own Irish pages, checked 1 October 2026. Both have offered introductory discounts to new customers; the table shows the regular prices. RTD is the Return of Trading Details, the annual VAT breakdown every VAT-registered business in Ireland has to file.

What an Irish trades business needs from its accounts

Before the features, the jobs Revenue gives you. Whichever package you pick has to help with these:

• The VAT 3 every two months for most businesses, filed on ROS by the 23rd of the month after the period ends.
• The RTD once a year, a breakdown of your sales and purchases by VAT rate. Our RTD guide covers what goes in it.
• The right VAT basis. Plenty of trades use the cash receipts basis, paying VAT when the customer pays rather than when you invoice. You apply to Revenue for it, and it's for businesses with turnover up to €2 million, or that sell at least 90% to customers who can't fully reclaim VAT. It can't be used for construction work a subcontractor does for a principal contractor. Cash receipts versus invoice basis explains the difference.
• RCT, if you do subcontract work for main contractors or pay subcontractors yourself. A principal contractor has to notify Revenue on ROS before paying a subcontractor. RCT explained goes through it.
• Payroll, if you employ anyone, reported to Revenue on or before each payday.

One more on the horizon: from 1 November 2028, every business in Ireland must be able to receive structured e-invoices. Whichever package you choose, ask how it will handle that. Xero says its software is Peppol-certified, the network e-invoices travel on.

Price: euro versus dollars

Sage Accounting is priced in euro: €19 a month plus VAT for Accounting Start, a single user, or €37 plus VAT for Accounting, with unlimited users. Start covers invoicing, bank reconciliation and VAT returns. Quotes, purchase invoices, receipt capture, multi-currency and stock are on Accounting only.

Xero bills Irish customers in US dollars, so the euro cost moves with the exchange rate. On 1 October 2026 the plans were Lite $7, Starter $29, Standard $50 and Premium $75 a month, and from 1 November 2026 Starter goes to $32, Standard to $54 and Premium to $82. Xero's Irish pricing page doesn't say whether VAT is added on top. Every plan has unlimited users, but Lite allows 5 invoices and quotes a month and Starter 20, and Xero's footnote says invoices sent in by connected apps may count towards that limit. Job costing (Xero Projects) is an add-on from $7 a month.

For a busy trades business sending more than 20 invoices a month, the like-for-like comparison is usually Sage Accounting at €37 against Xero Standard at $50, rising to $54.

Irish VAT

Sage has the Irish rates built in: 23%, 13.5%, 9%, 4.8%, zero and exempt, plus a "No VAT" option. Sage maintains them and you can't edit them, which takes one decision off your plate. It supports both the invoice basis and the cash receipts basis. You prepare the VAT return in Sage, submit it yourself on ROS, then mark it as submitted in Sage. Its RTD report gives you the figures to copy onto Revenue's form, though Sage notes a few boxes it doesn't fill.

Xero is sold in Ireland as its global edition. When we connected JobFlow to a new Irish Xero business, it started with four placeholder tax rates, all at 0%, and the Irish rates had to be added. In September 2026 Xero launched Xero Compliance Ireland, an app that imports the Irish rates, works on either VAT basis, and prepares the VAT 3 and the RTD as a file to submit through ROS. In October 2026 it was in open beta for Xero partners, meaning accountants and bookkeepers, with access for small businesses "available soon". If your accountant is a Xero partner, they can use it on your books now.

RCT, where the two really differ

If you're a subcontractor working for main contractors, or a main contractor paying subbies, this is the section that decides it.

Sage Accounting added RCT in 2025. You can set your business up as a subcontractor, a principal contractor or both, raise RCT invoices with the site number, and run RCT reports to reconcile with Revenue's summary. Two limits: on Accounting Start only the subcontractor side is available, and RCT payments can't come through your bank feed. We found nothing in Sage's help centre that sends RCT notifications to Revenue for you, so the contract and payment notifications are still made on ROS.

We found no RCT feature in Xero's own documentation, and searching its Irish app store for RCT returned nothing in October 2026. Xero's guidance is to apply a reverse charge VAT rate to construction work under RCT, which gets the VAT 3 right, but the deductions themselves have to be tracked somewhere else.

If you're on Sage 50, the desktop package many Irish accountants still run, it's a different product again: it handles RCT through manual entries rather than a built-in feature, and it saves the VAT return as a file you upload to ROS.

Payroll, banks and support

Payroll. Sage sells its own Irish payroll that submits to Revenue, from €14 a month plus VAT for up to five employees. Xero has no Irish payroll and asks you to connect a third-party app; its payroll page names Parolla, SimplePay and Deel. With one or two employees or an apprentice, that's the difference between one bill and two systems.

Bank feeds. Both connect to the main Irish banks. Xero's help centre lists direct feeds for AIB, Bank of Ireland and PTSB. Sage names Bank of Ireland, AIB, PTSB and Revolut among the banks it connects to, and its feeds update once a day. If you keep a sterling account for Northern Ireland or UK customers, note that Sage's bank feeds don't support foreign currency accounts, and multi-currency in Xero needs the Premium plan.

Support. Sage has phone and chat support from 8am to 8pm on weekdays, which it describes as Ireland and UK-based, and an Irish office in Leopardstown. Xero offers online support around the clock and has no support phone number, though it can call you back.

On the phone. Both have free mobile apps for sending invoices and snapping receipts.

Our verdict: Sage Accounting, for most Irish trades

For a typical Irish trades business, a sole trader or a small crew doing domestic work and some contract work, we'd pick Sage Accounting. The reasons are the ones that cost you time every month: a price in euro, Irish VAT rates that are there from day one, RCT built in, payroll from the same company, and someone to ring when something doesn't add up.

Xero is a strong package, and it's the right call if your accountant runs their practice on it. Irish VAT in Xero is improving too: when Xero's Irish VAT tool opens to small businesses, we'll look at this verdict again.

How it plays out by situation:

• You do subcontract work for main contractors. Sage Accounting. Start covers the subcontractor side of RCT for €19 a month plus VAT.
• You're a main contractor paying subbies. Sage Accounting on the full plan, since principal contractor RCT isn't on Start. You'll still notify Revenue on ROS.
• You're a sole trader with a light month and an accountant on Xero. Xero Starter can work, but watch the 20-invoice limit.
• You employ a small crew. Sage keeps accounts and payroll in one place. Xero plus a payroll app works fine too if your accountant prefers it.
• Whatever your accountant uses. Honestly, this matters most. Ask them which package they work in, whether they'll give you access to their tools for your VAT 3 and RTD, and who handles your RCT and payroll.

Where your job software fits

Accounts software keeps the books; it isn't built to run the job. The quote, the booking and the invoice on the doorstep usually live in job management software, which hands the invoices and payments across to your accounts. That changes the sums above. If your quotes go out from job software, Sage Accounting Start not having quotes doesn't matter, and on Xero Starter, invoices sent in by apps may count towards the 20.

JobFlow syncs two way with both Sage Accounting and Xero: invoices, payments, deposits and credit notes go across on their own, and a payment recorded in your accounts comes back. One honest exception: JobFlow doesn't send RCT invoices to Xero, because we found nowhere in Xero to record RCT, so you'd enter those in Xero yourself. More on how the sync works with each.

Questions trades ask about Sage and Xero

Is Sage or Xero better for a tradesperson in Ireland?

For most Irish trades, our pick is Sage Accounting: it's priced in euro, has the Irish VAT rates and RCT built in, and sells its own Irish payroll. Xero is the better fit if your accountant works in Xero, if you want unlimited users and quotes on every plan, or if you rely on its large app store. It bills in US dollars and handles Irish VAT returns and payroll through add-on apps.

Does Xero handle RCT in Ireland?

Not as of October 2026. We found no RCT feature in Xero's own documentation and no RCT app in its Irish app store. Xero's guidance is to apply a reverse charge VAT rate to construction work under RCT, but the RCT deductions themselves have to be tracked outside Xero, and payment notifications are made on ROS either way.

Can Sage Accounting Start handle RCT?

For the subcontractor side, yes. Sage's own help says only subcontractor RCT is available on Accounting Start. If you're a principal contractor paying subcontractors, you need the Accounting plan and you must be VAT registered. Sage's help centre describes RCT reports for reconciling with Revenue, not sending notifications, so those are still made on ROS.

Does Xero do payroll in Ireland?

No. Xero has no Irish payroll of its own and asks you to connect a third-party payroll app; it names Parolla, SimplePay and Deel. Sage sells its own Irish payroll as an add-on that submits to Revenue, from €14 a month plus VAT for up to five employees.

Does Xero charge Irish customers in euro or dollars?

In US dollars. On 1 October 2026 Xero's Irish plans were $7, $29, $50 and $75 a month, and Starter, Standard and Premium rise to $32, $54 and $82 from 1 November 2026. Xero's Irish pricing page doesn't say whether VAT is added. Sage Accounting is priced in euro: €19 or €37 a month plus VAT.

Can Sage or Xero file my VAT 3 to ROS?

Neither files it for you. Sage Accounting prepares the VAT return and you submit it on ROS. Xero's new Irish VAT tool prepares the VAT 3 and the RTD and exports a file you submit through ROS; in October 2026 it was in open beta for accountants and bookkeepers, with access for small businesses described as coming soon.

Can I use the cash receipts basis for VAT in Sage or Xero?

Yes, both support it: Sage in its VAT settings, Xero through its Irish VAT tool. Check you qualify first. You apply to Revenue for the cash receipts basis, it's for businesses with turnover up to €2 million or that sell at least 90% to customers who can't fully reclaim VAT, and it can't be used for construction work a subcontractor does for a principal contractor.

Sources

• Sage Accounting pricing, Ireland: sage.com/en-ie
• Sage help centre, Ireland: VAT rates, VAT returns, RTD and RCT
• Sage Payroll, Ireland: sage.com/en-ie
• Xero pricing, Ireland: xero.com/ie/pricing-plans and the 1 November 2026 change
• Xero Irish VAT: xero.com/ie and Xero Compliance setup
• Xero payroll, Ireland: xero.com/ie
• Revenue: when VAT is payable, moneys received basis, RCT for principal contractors, VAT modernisation timeline

Money and VAT guides for Irish trades. Related: RCT explained, the RTD explained, cash receipts versus invoice basis, your year end and invoicing software for Irish trades. We make JobFlow; corrections to hello@jobflow.ie.