Dáil Éireann Debate, Tuesday - 16 June 2020
51. Deputy Cathal Crowe asked the Minister for Finance if he will give consideration to introducing a 0% VAT rate as an interim measure for the tourism and recreation sectors to give them a much needed boost post Covid-19 restrictions. [11150/20]
Amharc ar fhreagra108. Deputy Denis Naughten asked the Minister for Finance if he will reduce the VAT rate to zero for the hospitality sector to assist with the Covid-19 recovery of the economy; and if he will make a statement on the matter. [11369/20]
Amharc ar fhreagraI propose to take Questions Nos. 51 and 108 together.
I am advised by Revenue that the VAT rating of goods and services is subject to EU VAT law, with which Irish VAT law must comply. In general, the Directive provides that all goods and services are liable to VAT at the standard rate unless they fall within Annex III of the Directive, in respect of which Member States may apply either one or two reduced rates of VAT. Ireland currently operates two reduced rates of VAT, 13.5% and 9%, as permitted by the Directive. Specific services relating to the tourism and recreational sector are listed in Annex III of the Directive and therefore can be reduced to 9%. However, there is no discretion under the Directive to zero rate these supplies.
