Ireland raises tourism VAT to 13.5%
- EU VAT
- 09 October 2018 | Richard Asquith
In today’s 2019 Budget, Ireland announced that it will raise the VAT rate on tourism services from 9% to 13.5%. This will happen on 1 January 2019. The Minister for Finance, Pachal Donohoe, stated that the 9% rate, set in 2011 during the financial crises, 'had done its job'.
It is anticipated this increase will raise €466 million per annum.
Many EU countries, such as Ireland and Germany, have long provided a tax subsidy to this key sector, with considerable boosts in job creation and international visitor numbers.
With the exceptions of the UK and Denmark, most EU countries give a tax subsidy on restaurant, hotel accommodation, catering and other hospitality services.
|Country||Hotel VAT rate||Restaurant VAT rate||Theatres, Cinema VAT rate||Standard VAT rate|
In today’s 2019 Budget, Ireland announced that it will raise the VAT rate on tourism services from 9% to 13.5%. This will happen on 1...
Ireland's reduced 9% VAT rate on tourism services has been challenged by the Finance Ministry as a ‘deadweight’ on the economy’s finances. The department has claimed this...
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...