REACTING TO THE ROIS RETURN TO A 13.5 VAT RATE

31 August 2023

Reacting to the Republic of Ireland’s return to a 13.5% hospitality VAT rate from 9% from 1st September, Colin Neill, Chief Executive, Hospitality Ulster, once again called on Westminster to recognise Northern Ireland’s unique position.

“The end of the special reduced VAT rate for the hospitality sector in the Republic of Ireland highlights once again the significant disparity between Northern Ireland and the Republic on the hospitality VAT issue”.

“The movement of the VAT rate from 9% to 13.5% peels into insignificance when compared to what we have here, which is a VAT rate of 20%. We are not only suffering from having one of the highest hospitality VAT rates in Western Europe but the proximity of the Republic, with which we share a land border, creates a significant disadvantage on our doorstep when attracting tourists and customers, with border counties losing weddings and functions to venues across the border.”

“The hospitality industry is Northern Ireland’s fourth largest employer and Westminster needs to recognise that we share an island with our nearest competitor who has a VAT rate of just 13.5% compared to 20% here. Despite fluctuations of the rate in the Republic, the environment remains hugely challenging and uncompetitive when it is still 6.5% off our level”.