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THE GOVERNMENT HAS announced a ‘stay and spend’ tax rebate for people to claim money back on part of their hospitality costs while holidaying in Ireland.
The measure was announced today as part of the government’s multi-billion euro July stimulus plan hoped to boost the economy following the negative impacts of Covid-19.
As part of this, it is understood that people can receive 20% back from their restaurant and hotel bills in the form of a tax credit at the end of the year.
The rebate will come into force in October and it is expected to run until April 2021.
The maximum expenditure for individuals under this measure is €625, and up to €125 can be received in taxback.
This amount will be doubled for couples, who can receive up to €250 back on a spend of €1,250.
People must spend a minimum of €25 to avail of this measure, Taoiseach Micheál Martin said today.
Martin said the late introduction of this rebate in the year will “give the support when it is most needed” to the hospitality industry.
He said this will give “opportunities for people to take weekend breaks, go to restaurants and keep the industry going” when the summer tourism season ends.
The Taoiseach added that it is “critical in the winter months that we can keep income going in the sector”, at the moment and into the future.
The government has also announced an extension of the Pandemic Unemployment Payment and further measures for businesses.
The standard rate of Value Added Tax (VAT) is also being reduced from 23% to 21% for six months from 1 September this year.
The president of the Irish Hoteliers Federation, Elaina Fitzgerald Kane, said she has “serious doubts” about the effectiveness of the staycation tax rebate scheme in encouraging holidays.
“It seems overly cumbersome and convoluted, and we are urgently seeking further clarification from the government on how the measure will operate,” she said in a statement.
“We are disappointed that the government failed to deliver a reduction in tourism VAT. This is a missed opportunity given how highly effective the previous reduced VAT rate was in promoting increased employment.”
In the UK, the VAT rate on food, accommodation and attractions was reduced from 20% to 5% between this month and January 2021.
- With reporting by Ian Curran
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Why only in effect from October? People could really use it now i would have thought
@Brendan Geoghegan: July stimulus plan… takes effect in October. Sounds about right :)
@Brendan Geoghegan: Maybe to support tourism and hospitality in the low season?
@Brendan Geoghegan: maybe because there will be a full lockdown by then knowing they wont be giving anything back in tax. They would hardly do it during the summer holidays now would they, sure that would only be too generous of them lol
@Kevin Cassidy: Nothings fully opened until 10th August – the few places that are open now are probably busy enough.
October does make sense
@stephen: bit cynical of everything in life ?
@Brendan Geoghegan: its to extend the season a bit for hotels i guess
@Brendan Geoghegan: Is not supposed to be a treat for everyone. It is to encourage tourism in the off season to prop up the sector
I booked a week in Doolin and Galway, including the train and hotels it was coming in at 800. After the green list I looked at Malta for 300 all in. Safe to say which one I cancelled. If they want people to holiday in this country it has to be affordable. Sure you would need 1000 quid spending money a head here
@Niall Dunne: You’ll fund Malta isn’t much cheaper unfortunately
@Niall Dunne: is that travel to Malta essential?
@Dara O’Brien: will it be more expensive?
@Niall Dunne: classy spot in Malta for 300 I’d say.
@Dave Phelan: Some things will be. It’s about the same as Ireland overall
@Dara O’Brien: eh yes it is,much cheaper actually.
@Niall Dunne: Well done on following the advice on essential travel!!
@Niall Dunne: that must be some kip in Malta , good luck with that
That’s great for people who can afford to go away. What about people at end of their tethers especially recently laid off. A voucher system for everyone would have been a better influx to the economy…..
@John Gorman: And less bureaucratic. It would have a much quicker effect .
@John Gorman: one EU spokesperson did say regarding airline refunds in Mar/Apr people need the money now not in six months time for bills rents and so on.
@John Gorman: a voucher system would have no one spending cash and wouldn’t work
@Green Lentils: People would of course have spent cash. A voucher system would have worked much better but it doesn’t align with FFG’s MO. It’s far too egalitarian for their liking.
@Lingwood: yeah you mean that the people who pay for everything are getting something back and those that don’t aren’t. Kind of the way it should be! F the scroungers
@Green Lentils: a voucher is guaranteed cash.
@Mary Nugent: Refunds are already available if you contact your bank and dispute the transaction. Works for debit and credit. No point waiting for Ryanair.
With wanting to sound like an (ahem you-know-what) I think complaining about how much money we get back from our holidays is a very first world problem. I know we could use a break and all, but in the grand scheme of things world wide – we will deffo be seen as whingers for this, especially to other countries who are absoloutly destitute and have absolutely nothing but the fear of dying.
@Daragh Curtis: I completely agree with you. Govt are only doing this to give hospitality industry a dig out anyway.
@Daragh Curtis: now Daragh c’mon. Dont be speaking facts here :-) you know they need a good whinge on this page…
Watch the prices rise to match….
@Eddie Michael: ……We paid 8 euro for a glass of house red wine in a Salt hill Galway restaurant last night….Wont go back.
Ridiculous, cash in the pockets is what people and business need. Not this form of tokenism.
@King B: vat rate is going down from 23 to 21% generally – so some savings into the pocket there.
@Mairead Jenkins: its going to go in the service providers pocket, not the customers
@alphasully: so businesses can keep going and employ
@King B: somebody who knows nothing about economics talking about economics. There is a multiplier effect when money is put into the economy and that is what they are doing
@alphasully: Not necessarily. The intention is that retailers pass on the saving to get people out spending again. As you suggest not all of them will do that.
@Craic_a_tower: so you’re telling me this will benefit us more than giving cash?
Australian government did something like that years ago and it worked. Kept the economy going. So, I might not have a huge grasp of economics but I can see what works in other countries and and I know tokenism when I see it.
@alphasully: they know this, the ‘stimulus’ isn’t for Paddy the Citizen it’s for Paddy the Small Businessman.
Save your money and go on a decent holiday abroad next year.
This is for the wealthy off. This does noting for families. FG looking after their own again.
@tirnanog1979: nope it for everyone and an economic stimulus package. Even if you don’t avail it helps you
For those of us not on great money (33k, not quibbling) this is effectively 20% of 20%. We will receive 4% back from our 625 spend… What a joke, even the auld student card does better.
@William Croke: I think you’re wrong there, you get a rebate at the end of the year amounting to 20% of whatever you spent – it’s a rebate and not marginal relief so you’ll get the full 20% regardless of tax bracket
@Dara O’Brien: I’m sure you are probably correct, the article states that it is to be done via tax credit which would allude to it being rather pointless for most.
AKA hotels raise prices by 20%…
What about the ppl who are on disability, pensioners , ppl on the dole who lost there jobs they dont have savings surely if they had got some sort of extra money that would have gone back into the economy as they would all be shopping local
@Paul Dunne: ,what about the pensioner on the bottom end who have crawl to save for a pint
EU plan put in place after his few days in Brussels
So no chance tax back on an Airbnb?
I bet prices will increase by about 25% in the winter
@Emmett Currie: they wont if they are empty which they will be anyway by then. it might bump the numbers up a bit. but anyone I know in the sector is hoping there wont be carnage in the sector come September October.
And the hotel sector will put its prices by an equivalent amount.
Hotels restaurants and pubs up the north will be licking their lips with vat slashed to 5% in the UK.a lot of people will be going over the border in the coming months
@tuco: how’s that helping the country
@talksense: since when do people use their hard earned money to “help the country” when holidays are involved? We help it enough with the taxes we pay – no? Or buying local when we can …
@tuco: Well said, The 13% VAT on restaurants and hotels is about the highest in The EU. With the UK and NI reducing the VAT to 5% I would have wondered why the same wouldn’t be down here. Is this new government trying to destroy the hospitality industry? People from near the NI border will just go to hotels/restaurants over the border. Very disappointing.
@tuco: dont think so. Theres not a lot there to attract people. Titanic apart.
@tuco: it much point going up north to save 16% on VAT and then lose the 20% rebate though is there ?
Still wouldn’t encourage me to holiday here.
Watch for more hotel hikes then
Mickey Martin can’t stimulate himself, never mind an economy. Your money’s going one way, to the top.
Appalling response for small business no change to 13.5% .. madness
@Michael Gerard Hayes: Well said
It’s a bit like a game of musical chairs. The ship is sinking if you can afford a holiday go for it just make sure you have enough gas in the tank before you book anything.
Only for the off season and schools back possibly ..more spoof
I only like to earn my money once.
Spend a little if /how I want…no interest in “applying” (working) for a few quid back which will surely be an online disaster and also put you on Revenue’s radar…
Tampon tax rebate. Strings attached.
Have to start collecting as many bills as I can. Whooo free dosh
@Larry Roe: haha raid Green bins looking for receipts..
Great for couples. Not so good for single parents.
Well I got flights to Palermo for €125 return! I’ll have a ball in the sun..Good luck now and Thanks!
Thank you for giving me my money back. Really appreciate it.
How do we claim this and do we need receipts ?
I welcome any way I can decrease tax. This will encourage me to go on a autumn city break.
What I’ve said all along I’d prefer not to take a break in over priced hotels etc making hoteliers and publicans wealthier. I’d like to see revenue and the government write off some of tax due on the temporary wage subsidy for 12 weeks that I received. I’ve no more holidays I can afford to take as I’ve been forced to take two lots of annual leave now and have only enough to cover Christmas.
We holidayed here for four days, it was so expensive! It definitely would have been cheaper to go away for a week abroad!
Sounds very ambitious
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