The lower VAT rate for the Irish hospitality sector of 9% has been extended for a further six months.

The proposal was approved by the Irish government and will see the 9% VAT rate remain until 28 February 2023. The estimated cost of this further extension is €250m.

Minister for finance, Paschal Donohoe, said:

“The tourism and hospitality sector was one of those most impacted by the public health restrictions put in place throughout the pandemic. Through no fault of their own, bars, hotels and restaurants had to close on multiple occasions to help the country make its way through the worst of the public health crisis. The 9% VAT rate was introduced in response to the challenges posed by covid-19 to support the hospitality sector and the government has decided to extend the period when the 9% rate will apply for a further six months. This will provide further support to the tourism and hospitality sectors over the busy November/December period and into the early new year.”