Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

This section amends the Value-Added Tax Consolidation Act 2010 with respect to rates of VAT. First, it provides that from 1 January 2019, as announced in the budget, the second reduced VAT rate of 9% will increase to 13.5% on goods and services predominantly in the tourism sector, with the exception of newspapers, periodicals and the provision of facilities for taking part in sporting activities, which will remain liable at the 9% rate. The 13.5% VAT rate will apply to supplies of catering and restaurant services, tourist accommodation, hotel and other holiday accommodation. It will also apply to admissions to cinemas, theatres, museums, certain musical performances, historic houses and open farms, fairground and amusement park services and hairdressing services. The supply of live horses not normally intended for use in the preparation of foodstuffs or in agricultural production, greyhounds, the hire of horses and the supply of certain printed matter will also be liable to VAT at the 13.5% rate.

Second, it amends Schedule 3 to insert a new definition of electronically supplied publications, which are e-newspapers, e-periodicals and e-books. It provides that the 9% VAT rate will apply to such electronically supplied publications from 1 January 2019. These publications are currently liable to VAT at the standard rate of 23%.