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VAT

The standard rate of VAT has remained at 23% . The reduced rate of VAT remains at 13.5% and 9% for certain items.

The UK rate of VAT is currently 20%.

The 9% rate applicable to certain service industries (tourism / hospitality etc) will continue in 2018. Last year it was stated that the need for such a rate was less important today than it was when it was introduced. I would therefore expect this to change in the coming years. The fall in the value of Sterling is the main reason that I suspect that it has remained in this budget.

The VAT rate for the use of sunbeds has increased from 13.5% to 23% as a policy introduced to acknowledge the Cancer risks sunbeds present.

VAT reclaim scheme to be introduced for Charities in 2019 for VAT incurred in 2018 on a pro-rata basis on non-State income to total income.

Threshold for cash receipts basis for VAT reporting increases from €1.25m to €2m from 01 May 2014.

The farmer’s flat rate addition will be increased from 5.2% to 5.4% with effect from 01 January 2017.

Home Renovation Incentive (HRI)

This incentive will provide a tax credit to residential properties who carry out renovation and improvement works on their principal private residences up to 31 December 2018. The tax credit is calculated at 13.5% of qualifying expenditure over €5k to a maximum of €30k. Therefore a credit will be available of between €675 to €4,050.

 

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