Ireland returns VAT rate to 23% 1st March 2021

Updated on July 4, 2022

Ireland has raised the regular VAT rate from 21% to 23% as of today, reversing a brief reduction in the COVID VAT rate. There will be no change to the reduced rate for tourism and hospitality rates until the end of 2021.

Ireland had already announced a temporary reduction in the Value Added Tax (VAT) rate from 23 percent to 21 percent last year. The rule went into effect on September 1, 2020, and will remain in effect until February 28, 2021.

In a €5.2bn economic package of 50 initiatives, this was one of the 50 measures. According to a government source, the coalition parties made a “late” decision to lower the standard rate. As far as we can tell, this was an after-the-fact decision, even though it benefited the vast majority of consumers.

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