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country-icon Ireland

03.15.23

VAT rate extension

As inflation continues to surge across Europe, it is becoming more discernible that government responses are centred predominantly around their fiscal structures.

Ireland’s fiscal policies, specifically its VAT rates, have taken on the following accommodations to allow for inflation:

  • Temporary reductions on gas and electricity from 13.5% to 9%, will be extended to 31 October 2023;
  • The temporary reduction on VAT on tourism and hospitality, from 13.5% to 9%, will be extended to 31 August 2023.  
These VAT cuts will come at some cost to the Irish government- 115 million Euros and 300 million Euros respectively, underlining the strategic value attached to government’s decision when implementing revised tax rates.

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