Services

VAT and Indirect Taxes

Changes to the 9% VAT Rate 

One of the major income raising measures announced in the budget was the increase in the 9% VAT rate to 13.5%.  That applies to various services including hotel and other holiday accommodation, catering and restaurant services, hairdressing, cinema etc. The 9% VAT rate has been retained for the provision of sporting activities and the supply of newspapers and other periodicals. 

The 9% rates will also apply to the supply of electronic publications, which have been defined as “books, newspapers and periodicals supplied electronically”. Certain items are excluded from the definition, which relate to advertising, audible or video content. 

Forced sales of Residential Property by Receivers 

There is a technical amendment to ensure that residential property sold by a receiver appointed over the assets of the developer of those properties continues to be VATable at 13.5%.

Return to Budget 2019 Analysis

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