Hotel federation criticises expiration of 9% VAT rate

'Increasing taxes on holidaymakers and Irish consumers is the last thing we should be doing,' Denyse Campbell, president of the IHF said

The lower VAT rate of 9% expired at midnight on Thursday and reverted back to 13.5%. 

The Irish Hotels Federation (IHF) has criticised the Government for letting the special 9% VAT rate for the hospitality and tourism sectors expire, saying it undermines Ireland’s “ability to compete” for international visitors.

The Government has long signalled that the 9% rate would expire at midnight on Thursday with the rate going back up to 13.5%. The lower rate was re-introduced during the pandemic to help struggling businesses and later extended to help them deal with rising inflation and the cost-of-living crisis.