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18 May 2012 update
The government has now confirmed the reduced Irish tourism VAT rate cut will be extended.
The Irish government has announced VAT rate cuts for the travel and tourism industries. Click here to read more about Irish VAT.
Click here to find out more about VAT in Ireland
SHORT TERM MeaSURE TO ATTRACT VISITORS TO IRELAND
From July 1 2011 VAT on restaurants, hotels and tourist attractions will be cut from 13.5% to 9%, where it will remain until December 2013. The current Irish VAT rate is 21.5%. The scope of this reduced VAT rate extends also to cinemas, theatres, sporting events, golf fees, newspapers and magazines due to their links with the tourism industry. This measure is combined with a cut to the €3 Air Travel Tax, on the condition that airlines use it to boost passenger numbers and open new routes.
PART OF A Larger initiative
This announcement came as part of a larger Jobs Initiative which is aimed at encouraging employment and improving Irelands economic competitiveness. This will be done through boosting tourism and investing in schools and training and investment initiatives.
Guarding Ireland's low business tax rate
Following it’s €85 billion bail out, Ireland has resisted pressure from other European countries to increase its ultra-low business tax rate of 12.5&. Finance Minister Michael Noonan again confirmed that this rate is ‘here to stay’. The Jobs Initiative will be funded in part by a levy on private pension funds of 0.6%.
Click here to be kept up-to-date on the Irish VAT cuts
Contact
TMF VAT Services
vat@tmf-group.com
+44 (0)870 067 8881
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