VAT and tourism in Northern Ireland

Jun 11, 2018

In its response to the call for evidence on VAT, Air Passenger Duty and Tourism in Northern Ireland, the NI Tax Committee cites the success of the 9 percent VAT rate in Ireland and recommends that any reduced rate in Northern Ireland mirrors this.  This call for evidence examines the case for a reduced rate of VAT on tourism in NI and potential changes to air passenger duty.

The submission also suggests that a useful precedent for examining the potential exchequer cost of any reduced rate of VAT for tourism is the exercise carried out before the Corporation Tax (Northern Ireland) Act 2015 was enacted which provides for devolution of the rate of corporation tax to the NI Assembly.  The submission recommends agreeing a methodology for and carrying out a full Exchequer impact analysis under the net cost approach when assessing the cost of any changes.