The hospitality sector is set to gain from a VAT reduction next year, according to sources, with the measure now confirmed as part of Tuesday’s upcoming Budget, reports RTE.
However, the VAT decrease will not be implemented until July 2026.
The rate will drop from 13.5% to 9% for qualifying businesses, reports RTE.
Hotels will not be included in the cut, though major franchise chains, such as McDonald’s, will benefit from the reduced rate.
This VAT change was pledged earlier in the year when the current Government was established in January, reports RTE.
Budget discussions are ongoing throughout the weekend, as ministers work to finalise a total €9.4 billion package.
Social welfare payment increases are expected to be approved tomorrow, though sweeping increases for all recipients are considered unlikely, reports RTE.
Ministers have already confirmed there will be no additional once-off cost-of-living supports this year, unlike previous Budgets.
There will also be no modifications to personal income tax, with existing rates, bands, and credits remaining unchanged, reports RTE.
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