М. Target Group would like to remind that the temporary VAT reduction from 9% to 5% for select services within hospitality and passenger transport industries, that was introduced as part of the relief package to support the economy back in July 2020, is over.
Therefore, as from 11 January 2021 the below services are subject to 9% VAT:
- Hotel, tourist and other similar accommodation
- Restaurant and catering services
- Transport of passengers and their accompanying luggage within the Republic with a taxi or a bus
M. Target Group remains at your disposal for a professional advice on how the above might impact your business as well as for any clarifications on transitional provisions.
