Ireland raises tourism VAT to 13.5%

Tue 9th Oct 2018

In today’s 2019 Budget, Ireland announced that it will raise the VAT rate on tourism services from 9% to 13.5%. This will happen on 1 January 2019. The Minister for Finance, Pachal Donohoe, stated that the 9% rate, set in 2011 during the financial crises, ‘had done its job’.

It is anticipated this increase will raise €466 million per annum.

Many EU countries, such as Ireland and Germany, have long provided a tax subsidy to this key sector, with considerable boosts in job creation and international visitor numbers.

With the exceptions of the UK and Denmark, most EU countries give a tax subsidy on restaurant, hotel accommodation, catering and other hospitality services.

Country Hotel VAT rate Restaurant VAT rate Theatres, Cinema VAT rate Standard VAT rate
UK 20% 20% 20% 20%
Ireland 13.5% 13.5% 13.5% 23%
France 10% 10% 10% 20%
Germany 7% 19% 7% 19%
Italy 10% 10% 10% 22%

Click for free Irish VAT info