RAI Shares Ireland’s 9% VAT Experience with Northern Ireland Affairs Committee
The Restaurants Association of Ireland appeared before the Northern Ireland Affairs Committee in the House of Commons in Westminster this week as part of the Committee’s inquiry into the taxation of the hospitality and tourism sectors in Northern Ireland.
The Committee was particularly interested in the experience of the 9% VAT rate in the Republic of Ireland, why the rate was introduced and the benefits it has delivered for restaurants and food businesses.
The appearance provided an opportunity for the Restaurants Association of Ireland to set out the experience of the hospitality sector in the Republic and discuss what that experience could mean for hospitality businesses in Northern Ireland, where the VAT rate is currently 20%.
The Restaurants Association of Ireland appeared alongside Hospitality Ulster, with the session providing an opportunity to discuss difficulties businesses face on both sides of the border.
Adrian Cummins, Chief Executive of the Restaurants Association of Ireland, said:
“We have already seen the benefits of the 9% VAT rate here in Ireland and we recognise and thank Government for introducing the rate on a permanent basis. While trading conditions remain difficult for many businesses, the lower rate has provided some much-needed breathing room for the sector.
“It was valuable to have the opportunity to explain that experience directly to the Northern Ireland Affairs Committee and outline what the 9% rate has meant for restaurants and food businesses in the Republic.
“The experience here is particularly relevant as Northern Ireland considers the case for a lower VAT rate for hospitality. Businesses north and south of the border are facing many of the same pressures”
“The Restaurants Association of Ireland supports calls for the VAT rate for hospitality in Northern Ireland to be reduced from 20% to 10%. We believe a lower rate would provide valuable support to businesses and jobs across Northern Ireland.
