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It was good news for the Hospitality Industry as Finance Minister, Michael Noonan has confirmed that VAT for the hospitality sector will stay at 9%, as one of Noonan’s “tax measures that will support job creation” and  said it was “important that we reinforce success when possible”. This was fantastic new as the drop in VAT from 13.5% to 9% in lats years budget has had a really positive impact on job creation. According to the Department of Finance 13,500 jobs have been retained or created since in the VAT rate was introduced last year

The Minister had previously signaled that the tax would revert to a higher rate at the end of the year, and his announcement this afternoon follows an intensive lobbying campaign from the Restaurants Association of Ireland and other industry bodies.

President of the Irish Hotels Federation Michael Vaughan said the move was “good news for Irish tourism” and a clear recognition by Government “of the importance of tourism as a labour intensive industry with enormous potential for further job creation”.


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