Northern Ireland Hotels Federation’s Post

Bulgaria As confirmed in Bulgaria’s 2025 draft budget plan, the 9% reduced VAT rate for restaurants and catering services will not be extended beyond its current expiration date. This reduced VAT rate was introduced in July 2020 as a temporary measure to support the hospitality industry during the pandemic. However, with the 2025 budget, the government has decided not to continue this reduction, meaning that the VAT rate for restaurants and catering services will return to the standard rate after the measure ends.

Changes in GST provisions for Hotel and Restaurant Services 🪙 The 55th GST Council Meeting held on 21st December ,2025 had made the following recommendations with respect to hotel and restaurant services. To omit the definition of declared tariff and suitably amend the definition of specified premises (from the services rate and exemption notifications) to link it with actual value of supply of any unit of accommodation provided by the hotel and to make the rate of GST applicable on restaurant services in such hotels, for a given financial year, dependent upon the ‘value of supply’ of units of accommodation made in the preceding financial year, i.e. 18% with ITC if the ‘value of supply’ exceeded Rs. 7,500 for any unit of accommodation in the preceding financial year, and 5% without ITC otherwise. Further, to give an option to pay tax on restaurant service in hotels at the rate of 18% with ITC, if the hotel so chooses, by giving a declaration to that effect on or before the beginning of the financial year or on obtaining registration .The above changes to be made effective from 01.04.2025 to avoid any transition difficulties. Notification No. 5/2025 – Central Tax (Rate) dated 16th January, 2025 , has been issued by the Ministry of Finance to give effect to the above recommendations. This Notification will be effective from 1/4/2025. This notification omits the definition of “declared tariff” and revises the definition of “specified premises”. It links the GST rate for restaurant services to the value of accommodation supplied during the previous year. New declarations for the “specified premises” have also been introduced for the registered persons /new applicants in the form of Annexures VII, VIII and IX. #GST #GovernmentofIndia #Taxation

It is causing immense frustration among Ireland’s small, independent restaurants, pubs and cafés to see figures like ‘over €700 million’ being used as the supposed cost of reinstating the 9% hospitality VAT rate in Budget 2025. For over a year, our industry has been united in asking for #VAT9 for food-led businesses - as Ministers should know from various joint lobbying days and correspondence by the RAI, Irish Hotels Federation, Vintners' Federation of Ireland, Licensed Vintners Association and the Irish Tourism Industry Confederation. The Department of Finance estimates the reinstatement of the 9% rate on food would cost €545 million, not €700m+. But even this figure is based on a static analysis that ignores the cost of closures and, on the flip side, the positive economic impact that the lower rate has had in the past. Each restaurant closure costs the State €1.36 million. We’ve seen countless closures that could have been avoided with a 9% VAT rate on food since last September. As we approach Budget 2025, let’s be clear: reinstating the 9% VAT rate on food is essential for the survival and viability of our hospitality industry, something cherished in every town, village and city across the country. It won’t cost €700m+ and, in fact, it could pay for itself by saving jobs and businesses. But, above all, let’s at least ensure that the discussion we have is based in the reality of what is being asked for. https://lnkd.in/e-uSWQ26

✨️ GST Rate on Restaurant Changed 👇 ✨️ The CBIC, through Notification No. 05/2025 and Notification No. 08/2025-Central Tax (Rate), introduces significant changes to the GST for hotel accommodation and restaurant services. 👉 GST rates will now be determined based on the actual value charged to the customer rather than the advertised or published tariff.....✅️ 👉 This change eliminates ambiguity and ensures a fair tax structure that reflects actual transactions....✅️ 👉 The definition of “specified premises” has been revised to provide clarity and flexibility for hotel operators. The new definition takes effect from April 1, 2025. ✨️ The GST rate for restaurant services within hotels will now be based on the value of accommodation supplied in the preceding financial year: 👉 When Accommodation Value (Previous Year) - Above Rs. 7,500 per unit per day then GST Rate is 18% and Input Tax Credit (ITC) Allowed 👉 When Accommodation Value (Previous Year) - Rs. 7,500 or less then GST Rate is 5% and Input Tax Credit (ITC) NOT Allowed ✅️ Optional Flexibility: 👉 Hotels can opt for an 18% GST rate with ITC for their restaurant services, regardless of room rates, by filing a declaration at the start of the financial year or upon registration.

✨️ GST Rate on Restaurant Changed 👇 ✨️ The CBIC, through Notification No. 05/2025 and Notification No. 08/2025-Central Tax (Rate), introduces significant changes to the GST for hotel accommodation and restaurant services. 👉 GST rates will now be determined based on the actual value charged to the customer rather than the advertised or published tariff.....✅️ 👉 This change eliminates ambiguity and ensures a fair tax structure that reflects actual transactions....✅️ 👉 The definition of “specified premises” has been revised to provide clarity and flexibility for hotel operators. The new definition takes effect from April 1, 2025. ✨️ The GST rate for restaurant services within hotels will now be based on the value of accommodation supplied in the preceding financial year: 👉 When Accommodation Value (Previous Year) - Above Rs. 7,500 per unit per day then GST Rate is 18% and Input Tax Credit (ITC) Allowed 👉 When Accommodation Value (Previous Year) - Rs. 7,500 or less then GST Rate is 5% and Input Tax Credit (ITC) NOT Allowed ✅️ Optional Flexibility: 👉 Hotels can opt for an 18% GST rate with ITC for their restaurant services, regardless of room rates, by filing a declaration at the start of the financial year or upon registration.

If you own a business in the hospitality sector, you may have overpaid VAT in the pandemic. Here’s what you need to know about claiming it back before it’s too late. ⬇⌛ In 2020, the government announced a temporary reduced rate of VAT for certain supplies relating to hospitality, hotel and holiday accommodation and admission to certain attractions. 𝗩𝗔𝗧 𝗿𝗮𝘁𝗲𝘀 𝗱𝘂𝗿𝗶𝗻𝗴 𝘁𝗵𝗲 𝗽𝗮𝗻𝗱𝗲𝗺𝗶𝗰 - 5% between 15th July 2020 and 30th September 2021 - 12.5% between October 2021 and March 2022 - 20% from 1st April 2022 onwards The reduced VAT rates applied to various supplies including: 🧃 Food and non-alcoholic beverages for consumption on your premises (e.g. restaurants, cafes, pubs and bars) 🍔 Hot takeaway food and non-alcoholic beverages 🏨 Hotel accommodation 🌅 Holiday accommodation 🏕 Caravan and camping pitches 🎡 Admission to certain attractions Due to bookings and events being postponed as a result of lockdowns and social distancing rules, it was common for supplies and payments or invoices to span over periods with different VAT rates. We recommend that businesses revisit VAT returns submitted during the pandemic and shortly after to make sure VAT has not been overpaid. If you have overpaid VAT, any errors MUST be adjusted within 4 years of the end of the relevant VAT return period. Once this window is gone, a business loses the opportunity to recover VAT so you must act fast! Our VAT experts can review your tax payments from this period and, if you have overpaid, help you claim back the amount you are owed. ✅ Contact us to find out more: https://lnkd.in/ephAxVQD

🚨The reinstatement of the 9% VAT rate required to return viability to Ireland's food-led hospitality industry Over 9-in-10 respondents to the latest Restaurants Association of Ireland/ Interpath Advisory survey said that the 9% VAT rate had been 'critical to the survival of their business'. Read more about the survey which highlights some of the serious challenges facing our industry here: https://lnkd.in/e_r5n_iU

577 Restaurants Closed in Just 11 Months: What’s Next for Ireland’s Hospitality Sector? 🎯The numbers are staggering—577 restaurants have closed in the 11 months since September 2023. This highlights the immense pressure the hospitality industry is under. 📈 In this context, the discussion around VAT cuts has returned. While it may offer temporary relief, is it enough to prevent further closures? This article from The Irish Times dives into the complexities of VAT policies and their impact on restaurants: https://lnkd.in/eWkETuw8 VAT cuts for restaurants were a bad idea last month. Why are they a good idea now? As an industry professional, I see the challenges firsthand. More than ever, we need solutions that address both immediate and long-term sustainability. 👉 What do you think? Are VAT cuts the answer, or do we need broader measures? How can we prevent more closures in the months to come? Let’s spark a conversation about the future of hospitality in Ireland. #VAT #Restaurant #Ireland #Dublin #Hospitality

Notification No. 05/2025-Central Tax (Rate), issued on January 16, 2025, revises the definition of “specified premises.” It ties the GST rate for hotel restaurant services to the value of accommodation supplied in the prior fiscal year.

The National Board of Revenue, by virtue of the powers conferred by Section 135, Section 49 and Section 127(b) of the Value Added Tax and Supplementary Duty Act, 2012 (Act No. 47 of 2012) read with Section 135, Section 49 and Section 127(b), hereby amends the Value Added Tax Deduction and Collection Rules, 2021 as follows: 15% for AC hotel services; 10% for non-AC hotel services; 5% for restaurant services (excluding restaurants located in residential hotels of three stars or above, restaurants located in residential hotels with a liquor bar and restaurants with a liquor bar); 10% for motor vehicle garage and workshop services. This shall come into effect immediately.