Irish VAT due to Increase to 23%
The Standard Rate of Irish VAT is due to increase to 23% with effect from March 1st 2021.
The rate had been reduced to 21% for a six month period from 1 September 2020 to 28 February 2021. The Minister for Finance has recently indicated that he does not intend to extend the reduction and therefore businesses should prepare for the 23% rate applying once more to their supplies and purchases from 1 March 2021 onwards.
It is important to note that this VAT rate change will not impact all supplies. In particular, the targeted VAT rate reduction from 13.5% to 9% for certain goods and services, mainly in the tourism and hospitality sectors, will continue to apply until 31 December 2021. Visit Revenue.ie for additional information on VAT.
If you require advice in relation to VAT, please contact us.
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