New VAT Rate
New VAT rate
The jobs initiative announced on the 10th May 2011 included a provision to introduce a new rate of VAT of 9% for certain goods and services. This new VAT rate will take effect from the 1st July 2011 and is scheduled to apply until December 2013. If your business falls into one of the categories below it is important that you correctly apply the new rate of Vat.
What else do I need to do?
Be sure to update your EPOS systems and accounting packages so that correct Vat reporting can be done. It is also important to ensure that the prices you display to customers in menus or on websites take account of the Vat changes.
Areas where the new VAT rate applies
• Supply of food and drink (excluding excise drinks) provided by way of catering or vending machine
• Supply of hot food (e.g. by takeaways, restaurants etc.)
• Supply of printed matter (excluding advertising) consisting of:
- Newspapers and periodicals
- Brochures, leaflets and programmes
- Catalogues, including directories, and similar printed matter
- Maps, hydrographic and similar charts
- Printed music other than in book or booklet form
• Promotion and admission to cinemas and live theatrical or musical performances (excluding dances and entertainment currently subject to 0% VAT)
• Amusement services normally supplied in fairgrounds or amusement parks (excluding dances, circuses and gambling)
• Admission to exhibitions in museums and art galleries
• The provision of holiday accommodation
• The provision of facilities for taking part in sporting activities (other than provided by non profit organisations)
• The provision by a member owned golf club of facilities for taking part in golf to non members where the annual fee income exceeds (or is likely to exceed) €37,500.
• The provision by a non-profit making organisation (other than a member owned golf club) of facilities for taking part in golf where the annual fee income exceeds (or is likely to exceed) €37,500.
• The provision of hairdressing services
Anything else?
Finally, careful consideration needs to be given also to credit notes, deposits and vouchers. Please do not hesitate to contact TaxAssist Accountants with any questions you may have.
