Ireland reduces VAT on tourism until 2013

In a boost to aid the crucial Irish tourism market, the government has confirmed that the Irish Value Added Tax rate on accommodation and related tourist services will be dropped from 13.5% to 9%.  This will be a temporary measure until 2013.

The services at the new rate will include: hotels, restaurants, theatres, newspapers, golfing holidays and the Air Travel Tax.

At the same time, the government has confirmed is determination to retain the low corporation tax of 12.5%, one of the lowest in the European Union.  Ireland raised VAT to 23% at the start of this year.