VAT rate to fall to 9% in hotels and restaurants

Finance Minister Michael Noonan has announced a cut in the VAT rate to 9% for certain tourism services as part of the Government's jobs initiative.

The new 9% VAT rate, which will apply from now to the end of 2013, is intended as a boost to the tourism sector to reduce prices in hotels, restaurants and theatres. Currently, the 13.5% VAT rate applies to those services.