Ireland: Implementation of Finance Law 2023 with changes to VAT rates, COVID-19 relief, and business support measures
The Irish President signed Finance Law 2023, which encompasses various measures to address taxation and support schemes.
The key measures included in the law are as follows:
- Extension of the reduced VAT rate of 9% for gas and electricity until October 31.
- Extension of the reduced VAT rate of 9% for hospitality and tourism until August 31.
- Continuation of the zero-rated VAT on supplies of COVID-19 testing kits, with retroactive effect from January 1.
- Extension of mineral oil tax reductions, with a gradual restoration of full rates by October 31.
- Amendments to the temporary business energy support regime (TBESS), including an extension until May 31, with a potential further extension until July 31.
- Reduction of the threshold to qualify for the TBESS regime, now requiring a 30% increase in electricity or gas costs, effective retrospectively from September 1, 2022.
- Increase in the relief level under the TBESS regime, from 40% to 50% of eligible costs, starting from March 1.
- Extension of the validity of specified agri-tax relief items until December 31, 2024, and December 31, 2025.
- Introduction of a 10,000 euros (US$10,894) reduction for the valuation of qualifying company vehicles, applicable from January 1 to December 31.
Source: data.oireachtas.ie
