- Impact of VAT on the Pub Sector: Over 2,100 pubs have closed in Ireland since 2005, largely attributed to the high 23% VAT rate on food and beverage sales, prompting calls for a reduction to the previous 9% rate to support the struggling hospitality industry.
- Broader Economic Effects: Reducing VAT could stabilize employment in the pub sector, enhance tourism appeal, and benefit local suppliers and related industries, creating a ripple effect throughout the economy as pubs regain operational capacity.
- Strategic Business Planning: Businesses in hospitality and adjacent sectors should monitor VAT policy developments, model financial scenarios for potential VAT changes, and engage in advocacy to influence equitable tax structures, ensuring preparedness for shifts in the tax landscape.
Source VAT IT Compliance
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