Irish standard VAT rate returns to 23%

The Irish headline rate of VAT returned to 23% on 1 March, having been temporarily reduced in response to the Covid-19 pandemic.

As part of the Government’s July Stimulus Package last year, the standard rate of VAT was reduced to 21% on 1 September, with the reduction to remain in force until the end of February 2021.

The standard rate of VAT applies to approximately 50% of activity in Ireland, and to a wide range of goods and services. Within the hair and beauty industry, it applies to products sold, therefore any prices changes that were made last September are due to be adjusted again.

The temporarily reduced VAT rate of 9% for the hospitality sector remains in place until the end of 2021. Hairdressing services are included in this.

Meanwhile, the Irish Government has extended a range of financial supports available to businesses and individuals as part of its revised Living with Covid-19 plan.

The new Covid-19 Resilience and Recovery 2021 – The Path Ahead publication outlines a number of updates and changes, including economic ones.

The Pandemic Unemployment Payment (PUP), Employment Wage Subsidy Scheme (EWSS), Covid-19 Restrictions Support Scheme (CRSS) and commercial rates waver have all been extended to 30 June.