In 2011 the Republic of Ireland cut the VAT rate on accommodation and meals from 13.5% to 9% to give the tourism sector a boost as the country suffered from a deep recession. Despite fierce lobbying, we are disappointed that the Irish Government has now made the decision to revert the VAT rate to 13.5% effective from 1 January 2019.
Hotels and More & Irish Welcome Tours understand the impact this will have for our partners across the world. To show our steadfast commitment to you and our desire to help you protect your relationship with your customers, we will guarantee the rate of all confirmed customer reservations on tours that have been contracted with us for travel in 2019 and made before 31 October 2018.
We have been working with and will continue to work with our supplier network to try and minimise any price increases. In situations where suppliers have chosen to pass on the VAT rise in full, we regret that for all new quotes and enquiries as well as unconfirmed reservations, we will have to pass on the VAT increase, in line with the government-mandated increase, effective immediately.
Whilst industry lobbying continues, all indications are that the increased rate will be introduced as announced. However, if there is any change, amendment or delay to the VAT increase, we will ensure that we pass on all reductions without any delay.
Please do not hesitate to contact your account manager if you have any queries.