Ireland raises tourism VAT to 13.5%
- Oct 8, 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 |
|---|---|---|---|---|
| UK | 20% | 20% | 20% | 20% |
| Ireland | 13.5% | 13.5% | 13.5% | 23% |
| France | 10% | 10% | 10% | 20% |
| Germany | 7% | 19% | 7% | 19% |
| Italy | 10% | 10% | 10% | 22% |
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