The Irish Government is introducing new measures to boost the country’s tourism sector.
The main features are a lower rate of VAT to 9% (down from 13.5%) for certain tourism related services, and a reduction of the air travel tax to zero to encourage overseas visitor numbers.
The new 9% VAT rate will apply mainly to restaurant and catering services, hotel and holiday accommodation and various entertainment services such as admissions to cinemas, theatres, museums, fairgrounds, amusement parks and sporting facilities.
Printed paper matter such as brochures, maps, programmes and newspapers will also be charged at the new rate.
Minister for Finance Michael Noonan said the purpose of the targeted VAT relief is to boost tourism and stimulate employment in the sector.
The reduction of air travel tax rate to zero will be on a date to be fixed following discussions with affected parties, including airlines.
