Irish Finance Bill 2013 includes VAT measures
The Irish Finance (Number 2) Bill 2013 was published last week. It included a number of VAT rate changes.
Irish Finance Bill VAT changes
- The new Bill restricts the offset of VAT incurred for services on the sale or transfer of a going concern business. In future, VAT will only be allowable in so far as it relates to taxable/VAT registered businesses.
- A range of goods will be moved from 4.8% reduced VAT rate to 9% Irish VAT rate. This will reduce the number of Irish reduced VAT rates to two, in accordance with EU rules. These include:
- Supply of race horses
- Supply of race greyhounds
- The hire of either race greyhounds or horses.
Irish VAT rates
The standard Irish VAT rate is 23%. Ireland raised its VAT rate from 21% in 2012.
There are currently three reduced VAT rates in Ireland
- 13.5% Irish VAT on agriculture, property services, labour-intensive services
- 9% Irish VAT on tourism services, newspapers and other services
- 4.8% on livestock, which is to be scrapped as above.
The EU VAT Directive only permits two reduced VAT rates, in addition to the standard VAT rate and nil-VAT rate (financial services, some foodstuffs, public transport etc)