File pic: Restaurants call for VAT reduction
The Restaurants Association of Ireland is calling for the immediate reduction of the Tourism and Hospitality VAT rate in Ireland to 5% and want to see an inclusion on alcohol on sales in the 5% rate.
It follows the announcement that the UK has cut the reduced Value Added Tax on hospitality services from the current 20% standard rate to the reduced rate of 5%. Some EU member states have also taken the decision to reduce their hospitality VAT rate in recent weeks, with new Covid rates being introduced. These rates will see Germany at 5%, Belgium at 6%, Austria at 5%, and Cyprus at 9% until the end of 2020.
“Support measures are needed urgently to keep the Tourism and Hospitality sector afloat following the shock from the COVID Crisis. We are calling for a reduction in the Tourism & Hospitality VAT rate to 5% and an inclusion on alcohol on sales in the 5% rate," said Adrian Cummins, CEO of the Restaurants Association of Ireland.
The hospitality sector has been one of the hardest-hit by the Covid-19 pandemic. Concerns about the cost of running a restaurant post-Covid-19 continue to rise among our members. These include insurance companies not paying out for business interruption claims, landlords continuing to seek full rents throughout the period of closure, no wage supports for seasonal and new businesses, and utility providers disconnecting services."