Ireland: Implementation of Finance Law 2023 with changes to VAT rates, COVID-19 relief, and business support measures

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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:


  1. Extension of the reduced VAT rate of 9% for gas and electricity until October 31.
  2. Extension of the reduced VAT rate of 9% for hospitality and tourism until August 31.
  3. Continuation of the zero-rated VAT on supplies of COVID-19 testing kits, with retroactive effect from January 1.
  4. Extension of mineral oil tax reductions, with a gradual restoration of full rates by October 31.
  5. Amendments to the temporary business energy support regime (TBESS), including an extension until May 31, with a potential further extension until July 31.
  6. 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.
  7. Increase in the relief level under the TBESS regime, from 40% to 50% of eligible costs, starting from March 1.
  8. Extension of the validity of specified agri-tax relief items until December 31, 2024, and December 31, 2025.
  9. 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


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