Update on VAT Rates in the Hospitality Sector
Attention business owners and service providers in the hospitality sector: Effective from the end of 31st August 2023, the special 9% VAT rate for certain services in the industry has been discontinued. As we transition into this new phase, these specific services will be subject to the standard VAT rate of 13.5%. We're aware of the passionate appeals made by various industry associations, but this change is moving forward as planned.
To ensure clarity and smooth transitions in your billing processes, here's a list of services that were previously taxed at 9% and will now be subject to the 13.5% VAT:
Dining Services: This covers catering and restaurant offerings. Remember, alcoholic beverages, soft drinks, and bottled water are excluded from this category.
Refreshment Offerings: Tea, coffee, and hot takeaway foods will need to be billed at the 13.5% VAT rate.
Accommodation Services: Whether you operate a guesthouse, caravan park, or camping site, these lodgings will now fall under the standard VAT rate.
Entertainment & Cultural Venues: For those running cinemas, theatres, certain musical performances, museums, art galleries, or exhibitions, adjust your admission prices to reflect the 13.5% VAT.
Hairdressing: If you provide hairdressing services, be prepared to apply the updated VAT to your charges.
We recognize that this adjustment may pose operational challenges initially. However, being well-informed and proactive can help in ensuring a seamless transition. As always, we remain committed to supporting our community of business owners and service providers through these changes.
If you have any questions or concerns regarding the adjusted VAT rate please contact Padraig.
Email: pambrose@nkc.ie
Phone: 01 6754382