Tourists will retain VAT break

[caption id="attachment_68350" align="aligncenter" width="600" caption="Leo Varadkar. "]


Ireland's value added tax rate is set to rise as part of the government's upcoming budget but Visitors to Ireland in 2012 will not be hit with extra VAT on tourism related products.

Minister for Tourism, Leo Varadkar, has stated that the lower nine percent VAT rate for tourism products will remain in place in 2012, the Irish Examiner reported.

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Speaking at the official opening of the Good Food Ireland conference in the Shelbourne Hotel in Dublin last week, Varadkar said: "I can confirm that the nine percent VAT rate will apply throughout 2012. This rate is significant because it principally benefits home-grown employers which are based in Ireland.

"Many operators moved quickly to pass the VAT cut on to their customers following its introduction. Even where the rate was not passed on, it still benefited the tourism industry by

helping businesses to

expand their operations, or take on additional staff," he added.