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VAT RATE CHANGE

In late July, the Irish Government announced its updated stimulus package for businesses.
It includes a number of initiatives around employment and wage subsidies, grants, loans and tax cuts. One of the measures announced is a temporary reduction in the standard VAT rate.

Further guidance on the scope of this relief can be found on the Government Website here. Please keep checking the Gov.ie website for more updates.

What is the change?

  • The standard rate of VAT in Ireland has been reduced from 23% to 21% This change comes into effect from 1st September 2020
  • It is a temporary reduction, lasting for a six month period until 28th February 2021
  • The change will not impact the VAT treatment of supplies which qualify for the reduced rate of VAT which remains at 13.5%.

What do I need to do?

  • You need to make sure your systems are set up to handle the new VAT Rate from the 1st September 2020.