Restaurants Association Of Ireland Welcomes Permanent Return Of 9% VAT Rate

The Restaurants Association of Ireland has welcomed the permanent reintroduction of the 9% VAT rate for food-led hospitality businesses, which comes into effect on Wednesday, July 1.

The Association described the permanent return of the 9% VAT rate as a ‘vital viability measure’ that will help protect indigenous businesses, sustain employment and strengthen communities across Ireland.

The Restaurants Association of Ireland thanked the government, and all those who supported the measure, for recognising the importance of Ireland’s food hospitality sector. It said the permanent return of the 9% VAT rate backs jobs, communities and businesses across the country while providing greater certainty for food businesses as they continue to navigate significant cost pressures.

‘Landmark Day’

“This is a landmark day for Ireland’s food hospitality sector,” said Adrian Cummins, chief executive of the Restaurants Association of Ireland.

“The permanent return of the 9% VAT rate is recognition by Government of the immense pressures businesses have faced in recent years. Our members have shown remarkable resilience while continuing to provide employment, serve their customers and support communities across Ireland.”

He added, “This measure will disproportionately benefit small and medium sized enterprises, with 99.6% of hospitality businesses classified as SMEs. It is about supporting your local café, your neighbourhood restaurant and your local gastropub. These are businesses that employ local people, giving young people their first opportunity in the workforce, while supporting local suppliers and keeping money circulating in local economies.”