Press release
Minister Martin welcomes drop in VAT rate for tourism and hospitality sector from Sunday
From Department of Tourism, Culture, Arts, Gaeltacht, Sport and Media
Published on
Last updated on
From Department of Tourism, Culture, Arts, Gaeltacht, Sport and Media
Published on
Last updated on
The Minister for Tourism, Culture, Arts, Gaeltacht, Sport and Media, Catherine Martin TD, has welcomed today’s confirmation from the Minister for Finance, Paschal Donohoe TD, that, as announced in Budget 2021, the VAT Rate for the tourism and hospitality sector will drop from 13.5% to 9% from Sunday 1 November.
Minister Martin is acutely aware of the devastating impact of COVID-19 on the tourism and hospitality sectors in 2020. While the impact of the VAT cut will be limited initially by the necessary public health restrictions, the VAT cut is in place for the next 14 months, until 31 December 2021, and will allow the tourism sector to improve competitiveness and help individual enterprises to survive this unprecedented crisis.
Minister Martin said:
"The reduction in the VAT rate was a key recommendation of the Tourism Recovery Taskforce. The immediate concern is to help tourism businesses to survive the current crisis and thereafter to improve the competitiveness of the sector.
"When recovery takes hold, Irish tourism will face unique competitiveness challenges as all countries will be attempting to win share in a market where demand has collapsed. Along with the €55m in continuity funding provided in Budget 2021, additional funding for training and digitalisation, the introduction of the COVID-19 Restrictions Subsidy Scheme and other economy wide supports, the reduction in the VAT rate will allow tourism to play its part in a sustainable recovery."
ENDS