The Government announced on the 23 July 2020 the “July
Jobs Stimulus 2020”, which is the next phase of their
economic plan to deal with the ongoing threat of COVID-19 and
contains a spending package of circa €7.4 billion to reboot
the economy and set businesses on the path to recovery following
the COVID-19 pandemic shutdowns earlier in the year.
Certain tax measures to the value of €1.4 billion feature
in the July stimulus package which will be of interest to
businesses and their employees.
1. VAT Reduction
The standard VAT rate will be reduced from 23% to 21%, with
effect from the beginning of September 2020, for a 6 month period.
The aim of this temporary initiative is to encourage consumer
spending during the months in the lead up to Christmas when
spending in retail and hospitality sectors is expected to be low
due to the ongoing pandemic. Numerous factors must be considered by
affected business before the change comes into operation such as
system
