Ireland’s temporary VAT rate cut is no longer available from 1 March. The 23% Standard rate is back after the Irish Finance authorities decided to reduce the tax rate in 2020, during the second semester of the COVID-19 restrictions. The initiative was an attempt to reduce the economic impacts of the pandemic by boosting the country’s retail sector.
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Ireland’s VAT Rate Changes During the 2020-2021 Period
The Standard Rate reduction affected mainly the movement of goods and services, including e-services in Ireland. Both the Reduced Rate and the Second Reduced Rate have been kept the same all this time. The Ministers for Finance Paschal Donohoe and Sean Fleming, however, have decided to push the VAT back to the original 23% rate.
In 2020, Ireland was the only EU country to present GDP expansion, according to the European Commission, being currently one of the fastest-growing economies in the world.
Are VAT reductions to end across the EU? Is this a sign that the economies are restabilizing? Leave a comment with your opinion below.
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