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% VAT rate applies to certain goods and services previously liable at the 13.5% VAT 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% VAT.
Supplies of goods and services at the new 9% VAT rate
The goods and services to which the 9% VAT 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:
Supplies of goods and services remaining at the 13.5%
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% VAT.
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.
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