I 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.