Rates Waivers and Tax Measures
Waving of Commercial Rates: Rates due to local authorities are waived until 30 September 2021.
Reduction of Standard Rate of VAT: The standard rate of VAT was reduced from 23% to 21%, on 1 September 2020 until 28 February 2021. The VAT rate for the hospitality and tourism sector decreased from 13.5% to 9% on 1 November 2020 until 1 September 2022 (extended under the Economic Recovery Plan for Ireland).
Waiving of Licence Fees for Street Furniture: For the remainder of 2021, restaurant and café owners do not have to pay street furniture licence fees for tables and chairs used for outdoor dining. Restaurants can also continue to operate as takeaways for the rest of the year.
Revenue ‘Warehousing’ of COVID-19 Related Tax Debt for Businesses: Revenue is ‘Warehousing’ Deferred Tax Liabilities associated with the COVID-19 crisis. This will represent a direct support for affected businesses where a commitment to a phased payment arrangement is not possible. Arrangements will be put in place to allow debt that cannot be paid during the COVID-related period, to be warehoused interest-free for a year from recommencement of trading, during which time there will be no debt enforcement action taken by Revenue in respect of the debt. Prior to the expiry of the warehousing period, the business will be expected to engage with Revenue to reach an agreement on an exit strategy more suited to the specific business needs and the need for continued viability. The scheme will apply to businesses in all sectors of the economy who have been negatively impacted by COVID-19.