The standard Irish VAT rate has been cut by the government for a six-month period. The standard VAT rate will be reduced from 23% to 21%.
The change will be applicable in Ireland from 1st September 2020 until 28th February 2021. This tax measure was announced as part of the July Jobs Stimulus Plan, designed to support businesses impacted by Covid-19.
The temporary cut in the standard VAT rate is to be part of the draft Bill. This is due to be published shortly.
If you are currently operating in Ireland, or are planning to start trading in Ireland, you should make sure your business is ready to comply with the new temporary rate as of 1st September 2020.
This might include updating your internal systems, adjusting your pricing or reviewing any processes that involve the collection or payment of VAT.