Dáil Éireann Debate, Wednesday - 13 July 2022
155. Deputy Ged Nash asked the Minister for Finance the estimated yield from raising the VAT rate for the tourism and hospitality sector from 9% to 13.5% in 2023; and if he will make a statement on the matter. [38660/22]
View answerAs the Deputy will be aware, the VAT rate applying to the tourism and hospitality sectors are due to revert to 13.5% on 1 March 2023. The additional VAT receipts in 2023 as a result of this increase are estimated to be in the region of €195m. This accounts for the VAT periods to end October. The returns for Nov/December trading will be received in January 2024.
The estimated additional yield from raising the VAT rate for these sectors on 1 January 2023 instead of 1 March 2023 is €88 million.
Please note that in-year policy measures do not form part of the Budget package for next year. The carryover cost of the reduced rate of VAT for the hospitality sector in the first months of 2023 will be accounted for in my Department’s fiscal projections but will not impact on the overall Budget package.
