Dáil Éireann Debate, Tuesday - 29 July 2025
717. Deputy Pearse Doherty asked the Minister for Finance the estimated first-and full-year cost of moving hospitality to a reduced rate of VAT from the 1 July 2026; and the costs if the measure excluded accommodation. [43735/25]
Amharc ar fhreagra724. Deputy Ged Nash asked the Minister for Finance the current projected cost of reducing the VAT rate on hospitality sector to 9% from the current 13.5% rate; the cost when accommodation is excluded and the reduction applies only to food and drink; and if he will make a statement on the matter. [43802/25]
Amharc ar fhreagraI propose to take Questions Nos. 717 and 724 together.
I am advised by Revenue that traders are not required to identify the VAT yield generated from the supply of specific goods and services on their VAT returns. Therefore, it is not possible to provide a costing for the measures outlined above using information provided on tax returns alone. However, using other sources available to Revenue, a tentative estimate is shown in the table below.
|
|
Full Year |
|
All Hospitality |
€809.5m |
|
Of which Food and Catering |
€674.6m |
As the Deputy will be aware, because VAT is collected in the next VAT period the first year costs for VAT measures are often calculated on the basis of five VAT periods as the November/December VAT period is not collected until the following January/February period. However if a measure is introduced on 1 November 2025 for one year to 31 October 2026 the first year and full year costs are the same.
The Deputy may wish to note that these figures are compiled based on workings for the year 2025. Revenue is in the process of compiling updated figures for 2026 using updated data sources and that these figures will be subject to change in the coming weeks.
