Five VAT rates now operational in Ireland

EVERY so often, it’s a good idea to double-check what VAT rates we are being charged.

There have been some minor instances over the past month where VAT-registered persons have neglected to change the VAT rate they charge to their customers, to take account of the new lower rate for certain tourism and leisure products. The new 9% rate will apply to the following goods and services supplied between July 1, 2011 and December 31, 2013.

Goods and Services at the 9% rate:

* The supply of food and drink (excluding alcohol and soft drinks) in the course of catering or by means of a vending machine.

* Hot take away food and hot drinks.

* Hotel lettings, including guesthouses, caravan parks, camping sites etc.

* Admissions to cinemas, theatres, certain musical performances, museums, art gallery exhibitions.

* Amusement services of the kind normally supplied in fairgrounds or amusement park services.

* The provision of facilities for taking part in sporting activities by a person other than a non-profit making organisation.

* Printed matter such as newspapers, brochures, leaflets, programmes, maps, catalogues, printed music (excluding books).

* Hairdressing services (beauty treatments remain liable at the 13.5% rate).

An extensive range of goods and services are normally supplied at the 13.5% rate, and most of these goods and services will continue to be charged at the 13.5% rate.

From the farming perspective, the 13.5% rate continues to apply on agricultural contracting, AI services, concrete, repairs, and veterinary services etc.

There are five VAT rates now operational in Ireland — 0%, 4.8%, a new 9% rate, 13.5% and 21%.

And it is possible that a person can supply you with goods and services free of VAT, if that person is supplying in their personal capacity, or if they have not reached the VAT registration threshold.

The Revenue Commissioners have an extensive listing of the VAT rates that should normally apply on more than 2,500 types of goods or services at the http://www.revenue.ie/en/tax/vat/rates/index.jsp website address.

As always, each individual’s circumstances should be looked at for the best advice. Your questions on this and other issues are welcome.