Introduction of the Second Reduced Rate of Value Added Tax
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Introduction of the Second Reduced Rate of Value Added Tax
The Cornerstone of the Jobs Initiative comes into affect from 1st July 2011
A new lower of rate of Value Added Tax has come into affect today for a wide range of services connected to the hospitality and tourism sectors. This concept has been put developed with an objective to stimulate the struggling sectors.
The following is a comprehensive list of the goods and services that are available at the new 9% rate:
Ø The supply of food and drink (excluding alcohol and soft drinks) in the course of catering or by the means of a vending machine.
Ø Hot take-away foods and hot drinks
Ø Hotel lettings, including guesthouses, caravan parks and camping sites.
Ø Admissions to cinemas, theatres, certain musical performances, museums and art gallery exhibitions.
Ø Amusement services of the kind normally supplied in fairgrounds or amusement parks services.
Ø The provision of facilities for taking part in sporting activities by a person other than a non profit making organisation.
Ø Printed matter ( which includes brochures, leaflets, programmes, maps, catalogues, printed music (excluding books)
Ø Hairdressing services ( Note: beauty treatments such as facials, massages, nail treatments, tanning or sun bed services remain liable at 13.5% rate)
In addition there are a number of services that will remain at 13.5% and the following is a comprehensive list of the goods and services that will remain at 13.5%:
Ø Bakery products excluding bread
Ø Building services relating to residential property installation, routine cleaning
Ø Minor repairs of bicycles, shoes or leather goods, clothing or household linen
Ø Non-oral contraceptive products
Ø Goods used for the agricultural production of bio fuel
Ø Agricultural services
Ø Certain nursery or garden centre stock
Ø Animal Insemination services and livestock semen
Ø Children’s car safety seats
Ø Waste acceptance and disposal services
Ø Greyhound feeding stuff and live poultry and live ostriches
Ø Fuel for power and heating, coal, peat, timber, electricity, gas and heating oil.
Ø Building services relating to non-residential property installation, routine cleaning.
Ø Concrete
Ø Tour guide services
Ø Short term hiring of cars, boats caravans, mobile homes, tents or trailer tents
Ø Repairs and maintenance of cars, vessels and aircraft
Ø Services consisting of care of the human body
Ø Jockey services
Ø Photographic services including photographic prints
Ø Car driving instruction
Ø Veterinary services
Ø Certain works of art, antiques and literary manuscripts
The second reduced rate of Value Added Tax is to be operated from 1st July 2011 until 31st December 2013.
John McCarrick
John McCarrick and Associates
11 Dunville Avenue, Rathmines
Dublin 6,Ireland
Telephone:01 4960102
Fax: 01 4973717
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