New 9% VAT rate will support businesses - Senator

Ireland has reduced the VAT rate for qualifying food and catering services from 13.5% to 9%, effective from tomorrow (July 1).

The new 9% VAT rate, which has long since been lobbied for by the sector, will protect jobs and help businesses thrive, a Fine Gael Senator has said.

Senator Joe O’Reilly said the recent reduction in VAT for hospitality will help businesses remain competitive, continue to create jobs and provide quality services in our local communities across Cavan and Monaghan.

“We know that running a business isn’t easy and we are committed to working hard to reduce costs for businesses. There are around 20,000 restaurants, pubs and hotels across the country. They are in every town and village, like Cavan Town providing a great service for the community.”

While food and meals now enjoy the 9% rate, alcohol, soft drinks, and holiday accommodation packages remain at the standard 13.5% rate.

The senator added that jobs in hospitality were vital for so many communities across Ireland. Protecting the 186,000 employed in accommodation and food service is vital, he added. The VAT-reduction would pose a “huge help” and will be “felt on the ground” by shops, cafés and service providers who have worked hard through challenging times giving them space to reinvest, innovate, and expand.