The Irish government have announced a lowering of the standard rate of VAT for Ireland as part of the Job Stimulus Package. The standard VAT rate will be lowered from 23% to 21% for 6 months effective 1 September 2020 through to 28 February 2021.

What’s changing?

On 23 July 2020, An Taoiseach, Micheál Martin announced the July Job Stimulus Package. This is a programme of initiatives and incentives designed to help businesses re-open, get people back to work and promote confidence. As part of this programme the standard VAT rate was lowered from 23% to 21% for 6 months effective 1 September 2020 through to 28 February 2021. Full details of the VAT change can be found here – GOV.IE Guidance

In order to prepare for the VAT change, customers may need to take action within their software to ensure they are prepared. Here’s how:

  • Sage 50cloud Accounts – Customers will need to set up a new tax code by following our Sage 50 guidance
  • Sage 200 – Customers will need to set up a new tax code by following our Sage 200 guidance

Please contact our Support team if you require assistance in setting up your new tax code by calling 02879644975.

VAT domestic reverse charge