As of July 1, 2011 travelers to Ireland will find the prices charged by hotels, restaurants and retails shops a bit easier on their wallets. In an initiative hoped to increase economic activity and stimulate job growth, Ireland’s government has lowered the VAT, or value added tax, a consumption levy applied to many Irish goods and services. The new VAT rate of 9 percent replaces the former 13.5 percent rate. The lowered VAT rate is expected to remain in effect until December 2013.
So what type of savings does the reduced VAT mean for travelers to Ireland? According to RTE News Ireland’s website, tourists can expect to see lower prices on everything from hotel stays and movie tickets to take-out and restaurant meals. For example, a one-night stay at a five-star hotel that would normally cost around 190 Euros will now cost just under 180 Euros, a savings that can add up quickly over the course of an Ireland vacation.
The new VAT rate is expected to help create a more competitive market, especially among businesses offering the types of goods and services most often used by travelers, which may also mean lowered prices overall.