Budget 2019 sees the current VAT rate of 9% increase to 13.5%, with effect from 1 January and has been estimated by the Minister for Finance to generate an additional €466 million in VAT receipts for the exchequer in 2019. The increase will mainly impact hotels, other short-term guest accommodation providers and restaurants, but will also apply to other areas including cinemas, theatres, hairdressers, museums and art galleries. However, newspapers and sporting facilities will remain at the 9% rate which is welcome news for those sectors. Additionally, the 9% rate will apply to e-publications which are currently liable to VAT at the 23% rate.
Commenting on the changes to the VAT rate in the hospitality sectors, John Stewart, Tax Director at Deloitte said:
The retention of the 9% VAT rate for newspapers and the reduction in the rate of VAT on e-publications from 23% to 9%, a saving of 14%, is very good news for the industry, particularly as the sale of newspapers over the internet has increased significantly over recent years while print sales have declined.
concluded Stewart.
Issued of Murray on behalf of Deloitte
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