Paul McAuliffe (Dublin North West, Fianna Fail)
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54. To ask the Minister for Finance the categories of business and industry that the reduced VAT rate of 9% will apply to from 1 November 2020. [31855/20]

Paschal Donohoe (Dublin Central, Fine Gael)
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The 9% rate of value-added tax applies from 1 November 2020 to 31 December 2021 to the supply of restaurant and catering services, guest and holiday accommodation and entertainment services such as admissions to cinemas, theatres, museums, fairgrounds, and amusement parks.  It will also apply to hairdressing and the sale of certain printed matter such as brochures, maps and programmes.

The 9% rate already applied to magazines and newspapers and to admissions to sporting facilities. They will remain at this rate.

Pádraig O'Sullivan (Cork North Central, Fianna Fail)
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57. To ask the Minister for Finance if the reduced VAT rate for the hospitality and tourism sector, including hairdressers from 13.5% to 9% will be extended to include beauticians; and if he will make a statement on the matter. [31865/20]

Paschal Donohoe (Dublin Central, Fine Gael)
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The VAT rates applying in Ireland are subject to the requirements of EU VAT law with which Irish VAT law must comply. While hairdressing services will apply the 9% rate from 1 November, services consisting of the care of the human body, including beauticians, are subject to the 13.5% rate. 

This arises from the fact that many of goods and services to which Ireland applies a reduced rate of VAT, including services related to care of the human body, have their basis under an EU derogation that provides that as Ireland applied a reduced rate to these items on 1 January 1991, we are entitled to continue applying that reduced rate to those items.  However, this is conditional on the rate being no less than 12%.  These are known as ‘parked’ items, and are provided for under Article 118 of the EU VAT Directive.  As the services provided by beauticians are part of these parked items, it is not possible for Ireland to apply the rate of 9% to them.