VAT rate to go back up to 23% at start of March
16 February 2021 | 0
Finance Minister Paschal Donohue has announced that VAT will return to 23% from the start of next month.
On 1 March, the rate will go up 2% from its current rate of 21%, following a “temporary reduction” of the standard 23% rate which came into effect in September 2020.
However, Minister Donohue also said that the special rate for the service and hospitality sector will continue until the end of the year.
He likewise pledged there would be a Summer Economic Statement this year and a Spring Statement in the form of a stability programme update.
These are necessary according to Minister Donohue to return the national finances back onto a sustainable path, with the government having overspent by €16bn last year in the context of Covid-19 measures.