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Ireland fuel temporary VAT cut to 9% extended to Oct 2023

Temporary domestic gas and electricity cut from 13.5% to 9% until 31 Oct 2023

Ireland has again extending the reduced 9% VAT rate on domestic gas and electricity. The anti-inflation measure was first introduced in May 2022 as post-COVID and Russian invasion of Ukraine inflation began to rise. Inflation in Ireland fell to 6.3 per cent in April, down from 7 per cent.

Ireland has also provided a temporary hospitality VAT reduced rate of 9% instead of 13.5%. You can read more in our Ireland Country VAT guide.

In December 2021, EU finance minister agreed new reduced EU VAT rate setting freedoms which should come into place before April 2022.

Europe continues to rollover temporary VAT cuts to combat inflation

Whilst headline European inflation is now starting to come down from its winter peaks, it remains around 10% in many countries. But inflation on food remains very high, often closer to 15%. This has prompted many countries to shift from fuel VAT cuts to reductions on food.

Recent cuts include:

  • Cyprus cuts food VAT to zero for 6 months
  • Spain continues zero-rating on food till June 2023
  • Portugal zero-rates foodstuffs for 6 months
  • Netherlands proposed 0% VAT rate for food
  • Greece extends reduced VAT rate cut for fifth time
  • Spain cuts food VAT with natural gas VAT from 21% to 5%
  • Slovak Republic cuts VAT on restaurants and sports 2023
  • Estonia considers VAT cut to 5% for food and restaurants


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