The ‘July Stimulus’ package reduced the standard rate of VAT from 23% to 21% from 01 September 2020 to 28 February 2021. In the Hospitality & Tourism sector the 13.5% rate will be reduced to 9% from 01 November 2020 to 31 December 2021.
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 cease and the rate will revert back to 13.5% as of 01 January 2019. Certain items will remain at 9%, these items include newspapers and sporting facilities etc. The VAT rate on electronic newspapers will reduce from 23% to 9%.
Therefore services such as hotels, cafés and hairdressing will now be liable at the 13.5% rate.
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.