VATupdate

VAT proposals in budget 2022: 9% VAT rate Hospitality extended, Carbon Tax, Excise Tax Tobacco. Flat Rate Farmers

  • A VAT rate of 9% for certain activities in the hospitality and tourism sector to continue to 31 August 2022.
  • Rate of carbon tax to be increased by €7.50 per tonne/CO2 from midnight in respect of auto fuels and from 1 May 2022 in respect of other fuels, in line with the series of annual increases provided for in Finance Act 2020.
  • Excise tax (duty) on a packet of 20 cigarettes to be increased by 50-cent (including VAT) with a pro-rata increase on other tobacco products.
  • The flat-rate addition for farmers (which compensates non-VAT registered farmers for irrecoverable VAT on their input costs) to decrease from 5.6% to 5.5% from January 2022.

Source KPMG

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