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Ireland raises tourism VAT to 13.5%

  • Oct 8, 2018 | Richard Asquith

Ireland raises tourism VAT to 13.5%

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%

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. 

VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is the former VP Global Indirect Tax at Avalara