Irish 9% tourism VAT threat

Wed 12th Jul 2017

The Irish government is considering raising the reduced 9% VAT rate on tourism-related services.  This includes hotels, restaurant and café services, as well as cinema entrance.

The rate was introduced in 2011 to help the industry during the financial crisis. The potential impact of the UK’s exit from the EU has been another cited reason for the subsidy’s prolongation. It is credited with having credit over 30,000 jobs in the past five years.  The estimated annual cost of the subsidy is €500m.

However, the Department of Finance has stated in a recent review that it has now ‘done its job’, and the rate should be reverted to the 13.5% reduced rate.  The Irish standard VAT rate is 23%.

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