Treasury announces call for evidence into tourism VAT in Northern Ireland
On 13 March 2018, as part of the Spring Statement, the call for evidence for the Treasury’s review of VAT on tourism in Northern Ireland was published. It will seek evidence that demonstrates the impact that VAT and APD have on tourism in Northern Ireland, as well as shows how a reduction in either VAT or APD might help grow the tourism and hospitality sector in Northern Ireland. The review will also consider the question of the Air Passenger Duty.
This presents the best opportunity to date to secure a regional reduction for VAT to prove the Campaign’s economic case. Northern Ireland has always presented a clear indication of the competitive disadvantage faced by UK tourism businesses.
This was shown by Tourism Northern Ireland’s recent report, Unlocking the Growth Potential for Tourism to Northern Ireland from the ROI Market, which said that “The ROI tourism and hospitality industry enjoys a special 9 percent VAT rate. Northern Ireland’s VAT rate is 20 percent, which places it at a competitive disadvantage”.
The Campaign will be submitting evidence to the consultation, the terms of reference of which can be found here, laying out the exhaustive research the Campaign has conducted for a number of years into the clear benefits of a reduction.
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