Local Hospitality representative warns that increasing VAT rate will lead to job losses

A significant number of Hospitality jobs in the North West will be lost if the reduced 9% VAT rate is returned to 13.5% at the end of next month.


That’s the warning from the Donegal Representative of the Irish Hotels Federation who was reacting to research commissioned by the Irish Tourism Industry Confederation which also claims that if the rate is restored, the extra cost will likely be passed on to consumers.


The rate had been lowered in November 2020 to help the industry through the pandemic however it’s due to return to the higher rate at the end of next month.


Chair of the IHF Paul Diver says the sector is continuing to recover and any change to the rate would be detrimental: