Ireland lowers VAT rate on number of goods

| July 4, 2011 | 1 Comment

Ireland has slashed its VAT rate on a number of goods, including restaurants, hospitality and tourism in a bid to boost the economy and get consumers spending again.

The country’s Government lowered the rate from 13.5% to 9% on 1 July and it will remain until December 2012.

The new rate will mean slightly lower prices for the consumer and comes at a time when other struggling economies are raising their taxes.

It is hoped that other countries will follow Ireland’s lead.

According to Adrian Cummins, chief executive of the Restaurants Association of Ireland, the reduction will make Ireland more competitive to do business and bring more tourists to the country.

Meanwhile, the Irish Hotels Federation, which represents 1,000 hotels and guesthouses, said it fully supported the initiative and that it will urge its members to pass on the benefit “in full”.

At the start of the year, the UK lifted its rate of VAT to 20% in a bid to raise billions of pounds to trim the budget deficit.

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  1. aidan o driscoll says:


    We have 3 VAT rates in Ireland - 21% 13.5% ( now 9% for some things ) & 0%

    The 13.5% is generally on services inc hospitality industry but also for trades and the like ( electricians, plumbers, builders on the work they do ).

    The new 9% rate applies ONLY to the hospitality sector as you mentioned. However the 21% rate still remains on everything else.

    A controversial “temporary raid” on Irish pension funds is being used to fund this VAT Cut. With the IMF/ECB running the Irish Economy at the moment use of Exchequer funds for such initiatives is not allowed. Any sich initiative must be “revenue neutral”.


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