- Ireland extends 9 percent VAT rate on gas and electricity until 31 October
- The rate was set to revert to 13.5 percent from 1 May
- A Financial Resolution will be presented to the Dáil on 2 April for legal basis
- The reduced rate was first applied from 1 May 2022
- No decision on further extension; will be part of normal budget process
- Estimated cost of extension is €85 million
- Net benefit to households from 1 May to 31 October is approximately €26.60 for electricity and €20.28 for gas
- The extension aligns with government commitments to mitigate energy cost pressures
- Energy prices are increasing again, making the extension appropriate
- The VAT reduction was a response to the energy crisis and cost of living impact
- The reduction was possible due to an amendment to the VAT Directive in 2022
- The government is committed to measures to contain energy costs, including VAT adjustments
Source: gov.ie
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
