VATLive > Blog > Ireland > Ireland cuts VAT from 23% to 21% till Feb 2021

Ireland cuts VAT from 23% to 21% till Feb 2021

  • Jul 23, 2020 | Richard Asquith

Ireland has announced a temporary Value Added Tax rate cut from 23% to 21%. The measure will come into place on 1 September 2020 until 28 February 2021.

This is part of a €5.2bn economic package of 50 measures. The surprise decision to cut the standard rate of VAT from 23pc to 21pc was a "late" move by the coalition parties, according to a Government source. It appears the decision - which will benefit the vast bulk of consumers - was only made in the last few hours as ministers scrambled to finalise the package ahead of the Cabinet meeting in Dublin Castle. Ireland may cut its tourism and hospitality VAT rate too.

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VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He can be contacted at: He is part of the European leadership team which won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.
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