Change in VAT Rate – 9% rate on certain goods and services from 1 July 2011
A second reduced VAT rate of 9% will be introduced in respect of certain goods and services for the period 1 July 2011 to 31 December 2013. The 9% rate applies to certain goods and services previously liable at the 13.5% rate, including restaurant and catering services; hotel and holiday accommodation; admissions to cinemas, theatres, certain musical performances, museums and art gallery exhibitions; fairgrounds or amusement park services; the use of sporting facilities; hairdressing services; printed matter such as brochures, maps, programmes, leaflets, catalogues and newspapers. From 1 January 2014 the rate on these goods and services will revert to 13.5%.
Supplies of goods and services at the new 9% rate
The goods and services to which the 9% rate applies are those, and only those, listed in paragraphs 3(1) to (3), 7, 8, 11, 12, and 13(3) of Schedule 3 of the VAT Consolidation Act 2010. Examples of such goods and services include:
- the supply of food and drink (excluding alcohol, soft drinks and bottled water) in the course of catering
- the supply, by means of a vending machine, of food and drink that would otherwise be zero-rated
- hot take-away food and hot drinks
- hotel lettings, including guesthouses, caravan parks, camping sites etc
- admissions to cinemas, theatres, certain musical performances, museums, art gallery exhibitions
- amusement services of the kind normally supplied in fairgrounds or amusement parks
- the provision, by a person other than a non-profit making organisation, of facilities for taking part in sport
- printed matter e.g. newspapers, magazines, brochures, leaflets, programmes, maps, catalogues, printed music (excluding books)
- hairdressing services (Note: beauty treatments:- for example, facials, nail treatments, tanning, sunbed services etc remain liable at 13.5%).
Supplies of goods and services remaining at the 13.5%
rate
Goods and services listed in Schedule 3, except those listed in paragraphs 3(1)
to (3), 7, 8, 11, 12, and 13(3) remain liable at 13.5%.
What rate should the trader apply? – general rule
In general, goods and services supplied before 1 July 2011 are liable to VAT at the rate in force at the time of supply, namely 13.5%. However, where goods and services are supplied in June 2011, by a trader who is obliged to issue a VAT invoice, and that trader issues the invoice after 30 June 2011, the rate in force in July applies, namely 9%.
A trader supplying goods and services to private individuals should always apply the VAT.
Please visit Revenue website for full details of the above Act or contact Deirdre McDermott, Director OSK Audit for further information.
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