The hospitality VAT hike is effective from 1 January 2019 and hotels, restaurants and hairdressers are among those affected.
You may have noticed an increase on the cost of your morning coffee this year.
VAT was temporarily reduced to a 9% VAT rate for hotels, restaurants and hairdressing in 2012. In the 2019 Budget, the Minister of Finance increased the 9% rate of VAT to 13.5% for hotels, short term guest accommodation, restaurants, cinemas, theatres, hairdressers and barbers, museums and art galleries, and customers have been noticing the increase this month.
If your business is one of the above trades, you should therefore apply 13.5% VAT to your sales (if applicable) with effect from 1st January 2019.
If you have any queries, please contact a member of our Tax Team
+353 42 933 9955
VAT is charged at different rates from 0% to 23% depending on the goods or services you provide. Find out more from Revenue.ie