Ireland raises tourism VAT to 13.5%
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.
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