Government Warned VAT Cut for Hospitality Would Cost Taxpayers Dearly and Create Administrative Issues

• Cutting VAT for cafes, restaurants, and fast-food chains would impose an “extremely significant” cost on taxpayers and mainly benefit businesses that do not need help.
• The measure is considered poorly targeted, with most savings likely to be kept by businesses rather than passed to consumers.
• Direct support for struggling businesses is seen as a more efficient use of funds.
• Implementing different VAT rates for hotel services would create major administrative and operational challenges.
• EU law prevents targeting VAT cuts based on business size, profitability, or location, making it difficult to exclude highly profitable chains.

Source: breakingnews.ie

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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