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Irish Finance Bill 2013 includes VAT measures

  • Nov 2, 2013 | Richard Asquith

Irish Finance Bill 2013 includes VAT measures

The Irish Finance (Number 2) Bill 2013 was published last week.  It included a number of VAT rate changes.

Irish Finance Bill VAT changes

  1. The new Bill restricts the offset of VAT incurred for services on the sale or transfer of a going concern business.  In future, VAT will only be allowable in so far as it relates to taxable/VAT registered businesses.
  2. A range of goods will be moved from 4.8% reduced VAT rate to 9% Irish VAT rate.  This will reduce the number of Irish reduced VAT rates to two, in accordance with EU rules.  These include:
  • Supply of race horses
  • Supply of race greyhounds
  • The hire of either race greyhounds or horses.

Irish VAT rates

The standard Irish VAT rate is 23%.  Ireland raised its VAT rate from 21% in 2012.

There are currently three reduced VAT rates in Ireland

  • 13.5% Irish VAT on agriculture, property services, labour-intensive services
  • 9% Irish VAT on tourism services, newspapers and other services
  • 4.8% on livestock, which is to be scrapped as above.

The EU VAT Directive only permits two reduced VAT rates, in addition to the standard VAT rate and nil-VAT rate (financial services, some foodstuffs, public transport etc)

VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.