Minister Martin To Seek 9% VAT Extension

The Minister for Tourism has said she will seek a further extension of the 9% VAT rate for the tourism and hospitality sector in Ireland. The current reduced rate is due to expire on 28 February and revert to the higher rate of 13.5% from 1 March.

Minister Martin said that no decision on changes to the VAT rate for the sector have been made by Government.

"I have always said that should remain under review, and we take stock of where the industry is, and that is something Government will look at, will assess. No decision has been made on that yet’" she said.

The minister said it was "no secret" she sought the retention of the 9% rate in the 2023 Budget and "will continue to seek it".

Earlier, the Irish SME Association (ISME) renewed calls for an extension to the 9% VAT rate to the whole services sector, saying the reduced rate benefits both employment and social contributions. Neil McDonnell, the chief executive of ISME, said there is very wide support for fixing Ireland's reduced VAT rate at 9% across the services sector.