Rate change – 9 % VAT rate on certain goods and services

From 1 July 2011, a second reduced rate of VAT at 9% will apply to certain goods and services previously chargeable at 13.5%. The changes will take effect until 31 December 2013, after which the goods/services will revert to the 13.5% rate.

Revenue have indicated the following services are to come under the new rate:

• the supply of food and drink (excluding alcohol, soft drinks and bottled water) in the course of catering
• the supply, by means of a vending machine, of food and drink that would otherwise be zero-rated
• hot take-away food and hot drinks
• hotel lettings, including guesthouses, caravan parks, camping sites etc
• admissions to cinemas, theatres, certain musical performances, museums, art gallery exhibitions
• amusement services of the kind normally supplied in fairgrounds or amusement parks
• the provision, by a person other than a non-profit making organisation, of facilities for taking part in sport
• printed matter e.g. newspapers, magazines, brochures, leaflets, programmes, maps, catalogues, printed music (excluding books)
• hairdressing services (Note: beauty treatments:- for example, facials, nail treatments, tanning, sunbed services etc remain liable at 13.5%).

For more information, see Revenue’s information leaflet