The reintroduction of the 9% VAT rate for food-led hospitality businesses comes into effect on July 1st
The Restaurants Association of Ireland (RAI) has welcomed the permanent reintroduction of the 9% VAT rate for food-led hospitality businesses, which comes into effect on Wednesday, 1st of July.
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.
The reduced VAT rate will benefit restaurants, cafés, gastropubs and other food businesses across Ireland, the vast majority of which are small and medium sized enterprises. In fact, 99.6% of hospitality businesses are SMEs, meaning this measure will primarily support locally owned businesses at the heart of towns, villages and cities throughout the country.
Commenting on the introduction of the measure, Adrian Cummins, Chief Executive of the Restaurants Association of Ireland, said:
“Today is a landmark day for Ireland’s food hospitality sector. 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.
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.
Hospitality businesses are much more than places to eat. They are social hubs where families and friends come together, where visitors experience Irish hospitality and where communities thrive. From rural Ireland to our busiest towns and cities, these businesses are central to community life and local economies.
The permanent restoration of the 9% VAT rate gives businesses certainty for the future. It allows owners to plan, invest and continue creating employment in every county. We thank the Government, and all those who supported this measure, for recognising that backing hospitality means backing jobs, businesses and communities across Ireland.”
