Introduction to VAT Rate in Ireland (VAT 9)
The VAT 9 campaign, championed by the Restaurants Association of Ireland (RAI), is focused on addressing the significant financial hurdles faced by the hospitality industry. With a decisive objective, the RAI advocates for a reduced VAT rate in the 2025 Budget to bolster the sustainability of this essential sector.
Current VAT Rate Challenges in Ireland
Ireland’s hospitality sector has recently seen its VAT rate revert to 13.5% after a temporary decrease. This uptick has exerted considerable strain on restaurants, cafes, and pubs—pillars of local communities. The VAT 9 campaign emphasizes the need to return to a 9% VAT rate to alleviate these pressures and support the ongoing viability of these businesses.
Key Insights from the VAT 9 Campaign
The infographic provided by the RAI vividly illustrates the impact of VAT policies on the hospitality sector:
- 612 closures of food-led businesses have occurred due to the VAT increase.
- Each closure represents a €1.36 million loss to the economy.
- The sector saw a €906 million increase in tax receipts when the VAT was previously reduced to 9%.
- Over 270,000 livelihoods depend on the robustness of the hospitality and tourism industries. These figures highlight the critical role that favourable VAT rates play in the health of the hospitality sector.
Big Red Cloud’s Support and Solutions to improve VAT rate in Ireland
Big Red Cloud supports the VAT 9 campaign, recognizing its importance in safeguarding the future of the hospitality industry. To aid businesses in navigating these financial challenges, Big Red Cloud offers comprehensive VAT reporting features.
Our software automatically calculates and generates VAT reports, making compliance straightforward and allowing businesses to focus more on their operations and less on administrative burdens.
Conclusion: A Call to Unite
The VAT 9 initiative is more than a fiscal adjustment; it’s a necessary measure to ensure the survival and thriving of local businesses that bring vibrancy to our communities. At Big Red Cloud, we are committed to supporting our clients in the hospitality sector through powerful tools and advocacy for beneficial policies.
By engaging with this campaign and utilizing effective tools like those provided by Big Red Cloud, we can collectively contribute to a brighter, more stable future for the hospitality industry.
Explore how our solutions can support your business by visiting Big Red Cloud. For more information or to discuss how we can assist with your specific needs, please visit our contact page. If you’re ready to see the benefits of our software firsthand, sign up for a free trial today.
