The July stimulus package introduced by the Government includes a temporary six month VAT rate reduction. The new ruling started on 1 September 2020 and will see the standard VAT rate reduced from 23% to 21% until 28 February 2021. The standard VAT rate applies to 53% of activity in Ireland, including everyday services such as the supply of machinery, diesel, petrol, clothes and certain equipment.
Some agricultural activity will see changes, but a large percentage of agricultural activity falls under the reduced rate VAT category of 13.5%. It is important to point out that there is no change to this rate or to the flat rate VAT addition to livestock that compensates unregistered farmers.