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 the former VP Global Indirect Tax at Avalara
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