Ireland's raises VAT to cover a 'severe fiscal shortfall'
17 Oct 2008, Judith Tydd, AccountancyAge
http://www.accountancyage.com/aa/news/1777945/irelands-raises-vat-cover-severe-fiscal-shortfall
The Irish government has confirmed it is to increase the standard rate of VAT from 21% to 21.5% as of 1 December this year.
The increase formed part of the annual budget release on Wednesday.
Kieran Desmond, MD of TMF Ireland accounting services, said the increase has been driven by a 'severe fiscal shortfall'.
'The government is blaming the recession. The VAT increase is to be accompanied by other direct tax increases,' he said.
In addition, Richard Asquith, head of TMF VAT global compliance service, said he expects other countries to follow suit as the international trend sees a shift from business taxes onto indirect taxes.
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Visitor comments
Other EU countries also increasing
Hi,
I read on this site http://www.tmf-vat.com/european-vat that other countries are now doing the same. Hungary increased VAT by 5% in July 09, and Estonia by 2% to 20%.
Posted by: David Emery , 20 Jul 2009 | 00:00