article banner

VAT: Cost or opportunity for the hotel industry?

Jarlath O'Keefe Jarlath O'Keefe

While the continuation of the 9% rate of VAT on hotel accommodation is welcome a prudent hotelier should regularly review his interaction with VAT to identify potential opportunities.

A corporate customer based in the EU (not in Ireland) has booked a large number of rooms in your hotel. Your accounts department issues an invoice to the customer with 9% VAT on the room rate. The customer emails you to enquire if VAT should be charged as they are based in the EU and are registered for VAT.

Should Irish VAT be charged to an EU business customer?