The Minister introduced a VAT compensation scheme in order to compensate charities for VAT incurred on expenditure. This scheme will take effect from 1 January 2018 but will be paid one year in arrears (i.e. some element of VAT costs arising in 2018 may be reclaimable in 2019). Charities will be entitled to a refund of a proportion of their VAT costs based on the level of non-public funding they receive. The Minister also confirmed that a capped fund of €5 million will be available to fund the scheme in 2019.

The reduced VAT rate of 9% for goods and services, mainly related to the tourism and hospitality industry, will remain for 2018.

In accordance with the Government’s National Cancer Strategy, the 13.5% VAT rate applicable to sunbed sessions will increase to the standard 23% rate of VAT.