Tourist Tax in Ireland: Everything You Need to Know

by | Mar 21, 2023 | 0 comments

In this article, you will equip yourself with knowledge about:

 

  • What is Tourist Tax?
  • Can tourists claim VAT back in Ireland?
  • How much is a tourist tax refund in Ireland?
  • Can a tourist claim a tax refund?
  • Can I get my tax back if I leave Ireland?

Introduction

As a popular tourist destination, Ireland welcomes millions of visitors every year. While tourists enjoy the sights, sounds, and experiences of Ireland, they are also subject to taxes and fees during their stay. One such tax is the Tourist Tax, also known as the Value Added Tax (VAT). In this article, we will take a closer look at what the Tourist Tax is, whether tourists can claim VAT back in Ireland, how much the tourist tax refund is, and how to claim a tax refund if you are leaving Ireland.

What is Tourist Tax?

The Tourist Tax, also known as the Value Added Tax (VAT), is a tax that is applied to most goods and services purchased in Ireland. It is a tax that is added to the price of goods and services, and it is the responsibility of the seller to collect and remit the tax to the Irish Revenue Commissioners.

The current VAT rate in Ireland is 23% for most goods and services. However, there are some goods and services that are subject to a reduced rate of 9% or even a zero rate.

Can tourists claim VAT back in Ireland?

Tourists who are visiting Ireland from outside the European Union (EU) can claim a VAT refund on goods they have purchased in Ireland if they meet certain criteria. The criteria for claiming a VAT refund are:

  • The goods must be purchased in Ireland.
  • The goods must be exported from the EU within three months of purchase.
  • The total value of the goods purchased, including VAT, must be over €75.
  • The goods must be for personal or business use and not for resale.
  • The tourist must be a resident outside of the EU.

Tourists must keep all receipts for goods purchased in Ireland and present them to the retailer when requesting a VAT refund. The retailer will then provide the tourist with a VAT refund form, which must be completed and presented to Customs when leaving the EU. Customs will stamp the form and the tourist can then claim their VAT refund at a designated refund point.

It is important to note that not all retailers participate in the VAT refund scheme, and some may charge a fee for processing the refund.

How much is a tourist tax refund in Ireland?

The tourist tax refund in Ireland is the amount of VAT that was paid on the goods and services that are eligible for a refund. The amount of VAT refund can vary depending on the value of the goods and the VAT rate that applies to them.

For example, if a tourist purchased a jacket for €100, which includes €23 of VAT, and they are eligible for a VAT refund, they would receive a refund of €23.

Can a tourist claim a tax refund?

In addition to the VAT refund, tourists may also be eligible for a tax refund on their accommodation costs. The tax refund is known as the Irish Government Tax Back Scheme, and it is available to tourists who have stayed in hotels, guesthouses, or bed and breakfasts in Ireland.

To be eligible for the tax refund, tourists must meet the following criteria:

  • They must have stayed in commercial accommodation in Ireland.
  • They must have paid for the accommodation themselves.
  • They must have spent a minimum of €25 per night on accommodation.
  • They must have a valid tax number from their home country.

Tourists can claim a tax refund of 7.5% of the cost of their accommodation, up to a maximum of €125. The tax refund can be claimed at the end of the tourist’s stay, and it is usually processed within four weeks.

Can I get my tax back if I leave Ireland?

If you are leaving Ireland permanently or for an extended period of time, you may be eligible for a tax refund. The tax refund is available for employees who have paid tax in Ireland and are leaving the country. To claim the tax refund, you must complete a Form P50 and submit it to the Irish Revenue Commissioners.

Form P50 is used to claim a tax refund for the current tax year, and it can be submitted after the end of the tax year. The tax year in Ireland runs from January 1st to December 31st. If you leave Ireland during the tax year, you can claim a refund for the portion of the year that you were not in the country.

It is important to note that the tax refund is not automatic, and you must submit a claim to the Irish Revenue Commissioners. The amount of the tax refund will depend on your total earnings for the tax year, your tax credits, and any tax that has been deducted from your earnings.

Conclusion

In conclusion, the Tourist Tax or Value Added Tax (VAT) is applicable to most goods and services purchased by tourists in Ireland. However, tourists from outside the European Union (EU) can claim a VAT refund on eligible goods. Additionally, tourists may claim a tax refund on their accommodation costs under the Irish Government Tax Back Scheme. If leaving Ireland permanently or for a long time, tourists may also be eligible for a tax refund by submitting a Form P50 to the Irish Revenue Commissioners. It is recommended to seek updated information and guidance from a tax professional or the Irish Revenue Commissioners due to possible changes in tax laws and regulations.

Written By Irish Vat Experts

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