The supply of certain goods and services to which the rate of 13.5% currently applies, will be liable to VAT at 9% from 1 November 2020 until 31 December 2021.

Full details can be found on Revenue.ie.

This article will go through what you need to be aware of, and what to do if your business makes such supplies.

This applies to AccountsPrep integrated companies in the Irish Tourism & Hospitality sectors that are VAT registered.

As this reduced rate is temporary and not applicable to all transactions, we recommend the use of a new custom VAT code, to be applied as appropriate. This will make it simpler to identify transactions you're entering during this temporary reduced VAT rate period for reconciliation and analysis purposes.

All Irish AccountsPrep templates have a 9% tax code included, so companies set up with an Irish template don’t need to do anything.

If your company isn’t using an Irish template, you may need to create a new tax code yourself by going to Settings > Tax Codes and Add Tax Code.

If you also use AccountsPrep's Default Tax Codes per Nominal Account feature, you may also want to review and update these settings.

For guidance on what the change in the Irish reduced rate means for AutoEntry in general, refer to AutoEntry and the Irish reduced VAT rate change.