Proposed tourist VAT refund changes threaten 1,200 jobs and risk the loss of €108 million to business, a report published on Monday claims. Brexit legislation, now going through the Oireachtas, includes a Government proposal to limit VAT refunds to non-EU tourists on goods bought in the Republic to purchases of €175 or more. A report by economist Jim Power states that the proposal will risk 1,200 jobs in tourism and retail by endangering a measure worth €108.1 million to the economy, particularly outside Dublin.
The current relief, known as the retail export scheme, allows tourists from outside the EU to claim back VAT on crafts and gifts bought in the Republic during their stay. Most of the goods bought by tourists cost less than the new €175 threshold for the scheme proposed in the Brexit Omnibus Bill, which is now making its way through the Oireachtas. “Introducing the €175 limit on the retail export scheme would undermine competitiveness and decimate the Irish tourism and retail sectors, particularly along the Wild Atlantic Way,” Mr Power said. REF: Hospitality News Comments are closed.
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