Tom Fleming (Kerry South, Independent)
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Question 111: To ask the Minister for Finance following on from the recent decision to reduce the vat rate from 13% to 9% and the significance of this reduction to the tourism sector here, if he will clarify the businesses that will qualify for the new VAT rate. [15089/11]

Michael Noonan (Limerick City, Fine Gael)
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A second reduced VAT rate of 9% is being introduced in respect of certain services and goods mainly related to tourism for the period 1 July 2011 to end 2013. This change represents a reduction of 4.5 percentage points in the VAT rate (13.5%) that applied to these items up to now. All other goods and services to which the current reduced rate of 13.5% applies will remain at that rate.

VAT is charged on the supply of goods and services and as such the rate of VAT applying will depend on the economic activity and not the businesses producing those goods or services. Specifically, the following goods and services will be reduced from 13.5% to 9% with effect from 1 July 2011: the supply of food and drink (excluding alcohol and soft drinks) in the course of catering or by means of a vending machine; the supply of hot take-away food and hot drinks; hotel lettings, including guesthouses, caravan parks, camping sites etc.; admissions to cinemas, theatres, certain musical performances, museums, art gallery exhibitions; amusement services of the kind normally supplied in fairgrounds or amusement park services; the provision of facilities for taking part in sporting activities by a person other than a non-profit making organisation; the supply of printed matter e.g. newspapers, magazines, brochures, leaflets, programmes, maps, catalogues, printed music (excluding books); hairdressing services but excluding beauty treatments, such as, facials, massages, nail treatments, tanning or sunbed services, etc. Information in relation to the introduction of the reduced VAT rate of 9% is also available on the Revenue Commissioners website.