Ireland faces EU VAT rate questions
- Feb 20, 2017 | Richard Asquith
The European Commission has challenged Ireland’s extensive use of reduced VAT rates.
In the EC’s latest economic and tax review of the country, it pointed to the low rates on hotels and tourism-related services as undermining the tax base. Ireland introduced a 9% VAT rate on these services over five years ago to bolster its key tourism industry during the financial crisis.
The Commission pointed out that the sector has now recovered to pre-crisis levels, and so the tax subsidies should be withdrawn. The previous VAT rate on this sector was 13.5%. The difference is estimated at €626m lost revenues. The Commission also highlighted that Ireland has one of the highest standard VAT rates in the EU, at 23%, but a relatively narrow base.
Need help with your Irish VAT compliance?
Researching Irish VAT legislation is the first step to understanding your VAT compliance needs. Avalara has a range of solutions that can help your business depending on where and how you trade.
Total results : 4
Union vs non-Union OSS: what’s the difference?
UK VAT Guide - Avalara
North America Country VAT Guide - Avalara
US 2021 sales tax updates for foreign businesses
