One of the key measures announced by the Irish Government in the July 2020 Jobs Stimulus Plan was the temporary reduction in the standard rate of value-added tax (VAT). The standard rate of Irish VAT will be temporarily reduced from 23% to 21% for a six-month period from 1 September 2020 to 28 February 2021. This is the first change to the standard VAT rate in Ireland since 2012.
If you are currently a VAT registered business supplying goods and(or) services at the standard rate, please ensure that you apply the correct VAT rate in force at the time of invoicing; for example, the reduced 21% VAT rate should apply to goods or services supplied in August but invoiced in September (once in line with VAT legislation on invoicing).
The standard rate of VAT applies to broadly 50% of activity in Ireland and to a wide range of goods and services including for example, the sale of motor vehicles, adult clothing, alcohol, electrical goods, most household goods, non-basic foods stuffs, many e-services, professional services and telecommunications.
As always, should you requires any assistance, please do not hesitate to contact us.