The minister also announced that the 9pc rate will be extended to e books and digitally supplied newspapers with effect from January 1, 2019 (these items are currently subject to VAT at 23pc).”Terry O Partner, KPMG in Ireland”The 9pc VAT rate was originally introduced as a stimulus measure in July 2011 as part of a Government jobs initiative for the tourism and hospitality sectors. A Department of Finance study into the measure, released in July 2018, concluded that the benefits of the 9pc rate for the tourism and hospitality sectors no longer outweighed the cost of VAT receipts foregone.”Terry O Partner, KPMG in Ireland”Consequently, from January 1, 2019, the 13.5pc VAT rate will apply to restaurant and catering services, hotel and similar accommodation, and admissions to cinemas, museums and other attractions. The changes will also impact on certain other supplies including supplies of live horses (other than for food or agricultural production) as well as hairdressing.
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