VATLive > Blog > Ireland > Ireland returns VAT rate to 23% 1st March 2021

Ireland returns VAT rate to 23% 1st March 2021

  • Mar 1, 2021 | Richard Asquith

Ireland today reverses its temporary COVID VAT rate cut, increasing the standard VAT rate to 23% from 21%. The cut on the reduced rate for tourism and hospitality rates from 13.5% to 9% remains in place until the end of 2021.

Ireland had announced its temporary Value Added Tax rate cut from 23% to 21% last summer. The measure came into place on 1 September 2020 until 28 February 2021.

This was part of a €5.2bn economic package of 50 measures. The surprise decision to cut the standard rate was a "late" move by the coalition parties, according to a Government source. It appears the decision - which benefited the vast bulk of consumers - was only made in last minute negotiations. 

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VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.
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