Dáil Éireann Debate, Wednesday - 17 April 2019
69. Deputy Thomas P. Broughan asked the Minister for Finance the way in which the budget 2019 decision on VAT is reflected in the VAT yield for the Exchequer in the first quarter of 2019; and if he will make a statement on the matter. [17644/19]
View answerI presume the Deputy is referring to the Budget 2019 policy change to increase the VAT rate on tourism-related activities to 13.5 per cent from January 1st this year. The estimated increased Exchequer yield arising from this Budget change is €466 million in 2019. In terms of composition, the VAT rate increase in tourist accommodation is expected to yield €235 million, restaurants €191 million; hairdressing €27 million; bloodstock sales €7 million and cinemas and shows €6 million.
Generally speaking VAT is paid in arrears every second month with relatively insignificant receipts in the ‘off’ months. The January 2019 VAT receipts were primarily related to the November/December trading period, under which the old rate of 9 per cent would have applied to such tourism-related activity.
Accordingly, the recent March collection which mainly relates to the January/February trading period would have been the first under the new 13.5 per cent rate. In year-on-year terms monthly receipts were up by 9.0 per cent or €173 million. However, data is not available on what proportion of this relates to the rate increase or specifically the tourism sector.
