BUDGET for 2021 – WHAT ARE THE KEY ISSUES FOR IRISH BUSINESSES ?

Following the presentation of the Budget for 2021 by the Minister for Finance, Paschal Donohoe last week, the planned spending and taxation changes applicable for business next year have been outlined ! The aim is that it can address the ongoing challenges of COVID-19 (over the Winter months), along with as yet unknown impact(s) of BREXIT from January 2021 onwards. So what are the key issues for Irish businesses?

The Government’s July 2020 stimulus plan, among other economic supports, also contained a
temporary reduction to the standard rate of VAT. This reduces the standard rate of VAT in Ireland
from an amount of 23% to 21%, BUT ONLY for a period of six months from 1st September 2020 until
28th February 2021.

This is the first change to the standard VAT rate in Ireland since 2012 and is expected to result in a
cost of €440 million for the period of the stimulus. It is aimed at providing a boost mainly to ‘customer
facing’ SMEs such as retailers and publicans etc., through encouraging increased demand, along
with the additional opportunity of potentially retaining the VAT rate reduction.

As our friends at Bradley Tax Consulting have produced a really useful highlights summary for us on the main points of the Budget, please see below for the details!

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