Dáil Éireann Debate, Tuesday - 24 July 2018
313. Deputy Robert Troy asked the Minister for Finance if he will address the inequity between the rate of VAT applicable to locations (details supplied) and VAT on hotels providing convention facilities to remove the imbalance. [34565/18]
Amharc ar fhreagraThe VAT rating of goods and services is subject to the requirements of EU VAT law, with which Irish VAT law must comply. In accordance with the EU VAT Directive, the supply of conference facilities is liable to the standard rate of VAT, currently 23%.
However, where a supply of a conference room takes place in a hotel it would come within the meaning of a ‘letting of a room in a hotel or guest house’ as provided for in paragraph 11 of Schedule 3 to the VAT Consolidation Act, 2010. On that basis, the supply of the room is liable to the reduced VAT rate of 9%. This reduced rate applies to the room only and not to any other supplies associated with the service being provided.
The provision of a room or rooms in a conference centre does not come within the scope of the application of the reduced rate of VAT as it is not a ‘letting of a room in a hotel or guest house’. Under the VAT Directive, there is no scope to apply the reduced rate to the supply of conference facilities in these circumstances.
