Tourism and Hospitality

The VAT rate for the tourism and hospitality sector was temporarily reduced to 9% as a result of the COVID-19 pandemic. While the rate decrease was first introduced for the period 1 November 2020 to 31 December 2021, a number of extensions were granted with the most recent extension to 28 February 2023.

It has been announced that the 9% rate will continue to apply to the tourism and hospitality sector until 31 August 2023.

Home Energy

In addition, in order to assist with the increased cost of living and rising energy prices, with effect from 1 May 2022, the VAT rate on home heating gas and electricity (but not home heating oil) was reduced from 13.5% to 9%. It has been announced that the 9% rate will continue to apply until 31 October 2023.  


It was also announced that there will be a phased restoration of excise rates on petrol, diesel and marked gas oil over the coming eight months with rates increasing as follows:

  • 1 June 2023: increase by 6 cent per litre of petrol, 5 cent per litre of diesel and 1 cent per litre of marked gas oil.
  • 1 September 2023: increase by a further 7 cent for petrol, 5 cent diesel, 1 cent for marked gas
  • 31 October 2023: a final increase of 8 cent for petrol, 6 cent for diesel, and 3 cent for market gas oil.


Should you have any queries in respect of the above or the implications for your business, please contact Barry McNamara ([email protected]) or Áine Casey ([email protected]).