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Irish restaurateurs urged to pass on savings from new 9% VAT rate

01 July 2011 by
Irish restaurateurs urged to pass on savings from new 9% VAT rate

Restaurants should pass on the savings from a new lower rate of VAT to customers, the Restaurants Association of Ireland has told its members.

The new 9% rate of VAT, which applies to goods and services related to tourism, comes into force in Ireland today. It is down from the previous rate of 13.5% and will apply until the end of 2013.

"This is a key development in the recovery of the restaurant industry in Ireland which has suffered at the hands of the recession. It shows the Government's commitment to helping the industry recover from the downturn it has suffered in recent years. The new rate is one step in building a more competitive market," the Association said.

Adrian Cummins, chief executive of the Restaurants Association of Ireland added: "We are very pleased the Government has taken those steps to reduce VAT rate with the aim of making Ireland more competitive to do business and attract more tourists to the country. This is the first step in the road to recovery in the restaurant sector in Ireland and we will continue to advocate for the abolition of the Joint Labour Committees and Sunday Premium Payments."

The Irish Restaurant industry employs 64,000 people (1 in 4 tourism jobs) and contributes €2b to the Irish economy each year.

Industry calls for cuts after Ireland drops VAT rate for tourism businesses >>

Ireland cuts VAT for hotels and restaurants to 9% >>

VAT - are you weathering the storm? >>

By Neil Gerrard

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