Dáil Éireann Debate, Wednesday - 22 March 2023
92. Deputy Carol Nolan asked the Minister for Finance further to Parliamentary Question No. 232 of 7 March 2023, the projected revenue in a full year of a return to a 13.5% VAT rate for the hospitality sector; and if he will make a statement on the matter. [14048/23]
Amharc ar fhreagraI am informed by Revenue that a breakdown of net tax receipts, including VAT, by economic sector is available on the Revenue website at: revenue.ie/en/corporate/information-about-revenue/statistics/receipts/receipts-sector.aspx
The hospitality sector is approximately captured under Accommodation & Food Services in this breakdown. The Deputy may wish to note that due to the option for a group of companies to remit VAT through a single entity, businesses in the hospitality sector may remit VAT through an entity which is recorded under an economic sector other than Accommodation & Food Services.
I am further informed by Revenue that traders are not required to identify the VAT yield generated from the supply of specific services or at specific VAT rates on their VAT returns. Therefore, it is not possible to provide an accurate costing for the potential measures outlined using information provided on tax returns.
However, using a number of third-party data sources, a tentative estimate of the full-year VAT yield arising from a 13.5% VAT rate applying in the hospitality sector would be in the region of €1.7 billion, or an additional €563m compared to the full-year yield from the application of the 9% VAT rate. This estimate assumes no change in consumer behaviour as a response to the increase in VAT.
