VAT news tagged as "Tourism"

United Kingdom

UK tourism VAT review

March 13th, 2018

Today’s UK Spring Statement included an announcement of a consultation around Northern Ireland cutting its 20% tourism VAT rate to match Ireland’s 9%. This was an election manifesto promise of the DUP, which is now in a power sharing arrangement with the Conservative government. As part of the DUP ‘confidence and supply’ deal, the Conservatives …


Ireland

Irish 9% tourism VAT threat

July 12th, 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 …


United Kingdom

UK DUP tourism VAT demands

June 10th, 2017

Following the June 8 UK election, the Conservative party is negotiating an alliance with the Northern Ireland Democratic Unionist Party (DUP) to form the next government. The DUP’s election manifesto included a call for a VAT cut for the tourism sector.  Northern Ireland has long maintained that its (UK) 20% tourism VAT rate is highly uncompetitive …


Albania

Albania cuts tourism VAT rate

April 4th, 2017

Albania has cut its VAT rate on tourism from the standard rate of 20% to the 6% reduced rate. Most countries in Europe operate reduced VAT rates for tourism-related services, including hotel accommodation.


Ireland

Irish unions want tourism VAT subsidy end

September 28th, 2016

The Irish trade unions’ association is lobbying for an end to the 9% reduced VAT rate for the tourism sector. The rate was reduced from 13.5% to 9% in 2011 during the Euro crisis to help support the key tourism sector. Since then, visitor numbers have rallied strongly. Many hoteliers have shown strong profits in …


Ireland

Irish tourism VAT subsidy creates 46k jobs

August 19th, 2016

The reduced Irish VAT rate on tourism services (hotels, restaurants etc) has been credited with the creation of over 45,000 jobs since its 2011 implementation. The VAT rate was dropped from 13.5% to 9% mid-2011. The claim is controversial since the economy and visitor numbers increased anyway. And other countries (e.g. UK), which didn’t have …


Bangladesh

Bangladesh simplifies tourism VAT

July 30th, 2016

As part of the 2016/17 budget, Bangladesh has consolidated the VAT rates on a number of tourism-related services. Hotel VAT has been cut from 15% to 10%. VAT on restaurant services, excluding alcohol, has been raised from 7.5% to 10%.


Tanzania

Tanzania widens VAT net

June 12th, 2016

The range of goods and services subject to 18% Tanzanian VAT is to be modified. The proposed 2016/17 budget includes the following changes, effective 1 July 2016: Financial services to be subject to VAT, with the exception of interest bearing loans Tourism services are to be liable to VAT Exemptions from VAT for some basic …


Ireland

Ireland €640m tourism VAT subsidy challenge

June 9th, 2016

Irish government officials have challenged the continuing discount on the country’s tourism VAT rate. Currently hotels, restaurants, cafes and related industries only levy the reduced VAT rate of 9% compared to the other reduced VAT rate of 13.5% which was applied to tourism prior to 2011. The discount is worth €640m per annum to the sector, …