Irish VAT Rate Cut To Be Reversed In March

by Jason Gorringe, Tax-News.com, London

15 February 2021

The Irish headline rate of VAT will return to 23 percent from March, having been temporarily reduced in response to the COVID-19 pandemic.

Finance Minister Paschal Donohoe told parliament's Budgetary Oversight Committee that it is his intention that the rate "will go back up to its original rate at the end of the planned period."

As part of the Government's July Stimulus Package, the standard rate of VAT was reduced from 23 percent to 21 percent on September 1, 2020. The rate reduction was due to remain in force until February 28, 2021.

However, Donohoe also said that the temporary reduced VAT rate of nine percent for the hospitality sector will continue until the end of 2021.

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