I would point out that VAT is charged on the supply of goods and services, and the rate applying is subject to the requirements of EU VAT law with which Irish VAT law must comply. In this respect, when the 9% VAT rate was introduced in 2011 for tourism related to services, it was introduced in respect of certain goods and services to which a 9% VAT rate was permissible under EU VAT law, which were deemed relevant to tourism.
Hairdressing was deemed a tourism activity as it was recognised as a growing activity connected to hotel services and therefore part of the tourism industry. Similarly, printed matter such as brochures, maps, programmes, leaflets, catalogues and newspapers were deemed relevant to tourism thus, it was decided to include printed matter among those items to which the 9% VAT rate applies. Both hairdressing and printed matter are specifically provided for in Annex III of the VAT Directive thus allowing for a reduced VAT rate to apply to them.
However, other tourist activities such as tour guide services and the short-term hire of cars, boat, caravans and mobile homes remain liable to VAT at the 13.5%, as the provisions of the EU VAT Directive did not allow for a 9% VAT rate to apply to them.
