VAT Drop Hits Hospitality Hard | Dublin News

Midnight tonight marks a major tax shift: VAT for restaurants, cafes, catering, and hairdressers drops from 13.5% to 9%, costing the government over €230 million this year and nearly €700 million next. Aimed at easing pressure on labor-heavy sectors, this isn’t the first time — it was lowered to 9% during the pandemic but returned to 13.5% in 2023. Critics argue big chains benefit as much as small businesses, and warn public funds might be better spent supporting local enterprises. Economists note stagnant employment and squeezed margins in hospitality, though lower VAT may not translate to cheaper meals — the goal is boosting business profits, which aligns with European norms. Broader concerns linger: Ireland’s narrow tax base, heavy reliance on multinationals, and falling VAT revenue are being flagged by international bodies, especially as private consumption slows — the full economic impact remains to be seen. Listen in comfort:Get a discount on a Soli Pillow: http://solipillow.com/discount/dnn Advertise on DNN:[email protected] This is an automated, high-level news summary based on public reporting.Report issues to [email protected]. View sources & latest updates:https://sources.thednn.ai/ed22071f6227f7e7