July 23, 2020

Ireland – Lowered Standard VAT Rate to 21%

Ireland announced a temporary standard VAT rate drop from 23% to 21%. The lower rate will be effective on September 1, 2020 until February 28, 2021 as part of a €5.2bn economic package. It appears the decision was made in just a few hours before the Cabinet meeting in Dublin Castle. The 2% VAT reduction will benefit consumers – standard rate applies to 50% of activity in Ireland including household goods motor vehicles, non-basic foods stuffs, clothing, alcohol, electrical goods, many e-services, professional services and telecommunications. However, goods that qualify for a 13.5% reduced VAT rate will not be affected. In other words VAT on tourism and hospitality sector, including restaurant meals, hotel accommodation, housing, general repairs etc. remain the same.


Return to Latest VAT News