Scant hope of continuing reduced Vat rate for tourism and hospitality sector

The reduced rate of Vat is due to come to an end at the end of next month following a six-month extension agreed by the Government        

The Tax Strategy Group papers state that the reduced rate has so far cost the exchequer €1.2bn, and represented “a very significant investment” in hospitality and tourism.

Department of Finance officials have offered scant hope that tourism and hospitality firms will secure a further extension in the reduced Vat rate of 9% for their sector.

The reduced rate of Vat for the sector is due to come to an end at the end of next month following a six-month extension agreed by the Government designed to help businesses fully recover from the fallout of the pandemic.