VAT Increase in Budget 2012

There was always a commitment to increase VAT in Ireland from 21% to 23% by 2014 – as agreed with the IMF/EU in the four Year Plan. This has been on the cards since November 2010
It was confirmed in Budget 2012 that this  2%  increase is  to be brought forward to January 1st 2012 . The top rate of VAT is now increased  from 21% to 23% .
The 13.5% VAT rate on fuel remain unchanged.

VAT on “tourist related” services will remain at a reduced rate of 9% – see categories of products and services with lower 9% VAT  here

There is a 4.8%  rate of VAT specifically for agriculture. It applies to livestock (excluding chickens), greyhounds and the hire of horses

The Zero Rate of VAT applies to tea, coffee, milk, bread, most food and groceries , books, children’s clothes and shoes, oral medicine for humans and animals, vegetable seeds and fruit trees, fertilisers, large animal feed, disability aids such as wheelchairs, crutches and hearing aids.

Items that are exempt from VAT are : financial, medical or educational services