Emergency accommodation and ancillary services
The VAT Tax and Duty Manual on Emergency accommodation and ancillary services has been updated to provide clarity with regard to the supply of emergency accommodation.
This guidance sets out the VAT treatment of supplies of emergency accommodation
and ancillary services.
For information on the VAT treatment of guest and holiday accommodation or
passive lettings please see Revenue’s guidance on Guest and holiday
accommodation and Letting of immovable goods.
1. State owned accommodation
The provision of emergency accommodation in State owned property is outside the
scope of VAT.
2. Residential accommodation
The supply of emergency accommodation in all or part of a house, apartment or
other similar establishment is exempt from VAT.
2.1. Waiver of exemption
Where a person has waived their exemption from VAT in respect of houses,
apartments or similar establishments, acquired prior to 2 April 2007 and which are
used for emergency accommodation, such supplies are chargeable at the standard
rate of VAT.
3. Hotel or guesthouse accommodation
Where accommodation in all or part of a hotel or guesthouse is contracted to a State
agency as being provided as emergency accommodation, and that accommodation is
not available as guest or hotel accommodation to the general public, it is regarded as
an exempt supply of emergency accommodation for VAT purposes.
4. Direct Provision
The supply of accommodation for the purposes of Direct Provision constitutes a VAT
exempt supply of emergency accommodation.
5. Ancillary services
Services such as laundry of sheets and pillowcases etc., security, reception and
administration which are included in the cost of emergency accommodation, are
considered as being ancillary supplies and qualify for the exemption. Catering
services are not considered ancillary to the supply of emergency accommodation.
Tax and Duty Manual Emergency accommodation and ancillary services
6. Catering services
Catering services are considered as separate supplies for VAT purposes and are liable
to VAT at the appropriate rate. The supplier is required to register for VAT where the
annual turnover exceeds or is likely to exceed the registration threshold for
Where there is a supply of emergency accommodation and catering services, the
consideration payable must be apportioned between the exempt emergency
accommodation service and the taxable catering service.
7. Capital Goods Scheme
In circumstances where an owner of a capital good changes the use of the capital
good from taxable to exempt, a capital goods scheme adjustment is required. For
example, where a supply of hotel accommodation changes from being a taxable
supply of guest accommodation to an exempt supply of emergency accommodation,
a capital goods scheme adjustment is required to account for the change of use.
Detailed information on the operation of the CGS can be found here.
Overheads of the business should also be apportioned as required under normal
rules where there are both taxable and exempt business activities.
9. Option to Tax
The option to tax rents is not permitted where the property is used for emergency
residential accommodation. Detailed information on the operation of the option to
tax lettings of immovable goods can be found here.