The cost of eating out likely to get more expensive as hospitality VAT rate set to increase

The Vat rate was initially reduced to 9% as a measure to protect businesses during the height of the covid-19 pandemic

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The cost of eating out will likely increase from September as the 9% VAT rate for the hospitality sector looks set to be scrapped by the government.

Its now increasingly likely the rate will rise to 13.5 per cent on September 1st.

The VAT rate was initially reduced to 9% as a measure to protect businesses during the height of the covid-19 pandemic.

The rate was previously due to expire in February, but the Government extended it for six months as part of a cost-of-living package.

The rate was initially raised from 9% to 13.5% as part of Budget 2019.

The Restaurants Association of Ireland, warn raising the VAT from 9 to 13.5% will devastate the hospitality industry in Ireland.

They also say that the consumer will end up footing the bill if the rate increases.

Chief Executive of the Restaurants Association of Ireland, Adrian Cummins, says the current tax level is appropriate:

"We're very concerned about this in terms of the liability of many of these businesses throughout Ireland. We're saying to the government now is not the right time to increase the VAT rate."

He continued, "The 9% VAT rate is the right rate when you compare it to the rest of the European Union. It'll put us into the second highest VAT rate across Europe after Denmark if it goes to 13.5%."