Ireland - Hospitality VAT Rate Raise?


The Department of Finance in Ireland has advised the new Finance Minister - Paschal Donohoe - that the reduced VAT rate for the hospitality sector has “done its job”. They further advise that a return to the official reduced rate of 13.5% would yield an estimated €500 million per annum.

The 9% rate for special tourism-related activities, such as restaurants, hotels, cinemas and other areas, was introduced in 2011 to encourage growth and employment in the sector.

The hospitality industry argue that since the introduction of the 9% rate more than 30,000 direct jobs have been created and will strongly oppose the measure.



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