UK V.A.T. rate to be reduced to 15%

Status
Not open for further replies.
The reduction will make the Republic even less attractive to buy anything.

I come from the Uk, live in Dublin and find the cost of living quite unbelievable!

How can a sandwich cost £2.15 in Manchester and 4.5 euro here? I really struggle to understand how firms here can justify the costs.

Dublin is great for shopping but when everything is 40% higher priced I can't understand how they can say shop here instead of going elsewhere to save from a recession.
 
They want us to vote Yes to Lisbon and then dont go up the North to grab a bargain. I seriously worry for this Country and it's not just the recession. I think the Celtic Tiger acted as a cover to the high prices, incompetience etc. that we have here. The V.A.T. increase here was just crazy and now it's even going to be worse.
 
ubiquitous said:


When the Irish govt cut Capital Gains Tax to 20% in 1998, they said that it was only a temporary measure for 2 years at which time it would be brought back up to 160%.
Click to expand...

Well there you go, it's obvious why they didn't change it back then.
 
BroadbandKen said:
News just in - An Post to create hundreds of jobs to deliver massive increase of online orders from the U.K.
Click to expand...

UK companies distance selling into Ireland and exceeding the sales threshold of €35,000 should be registered for and charging Irish VAT at 21%/21.5% - so technically no rate difference

see link

http://www.tmf-vat.com/home.php?pageid=57&menuid=375&langid=1
 
Not many UK companies bother to do it thou. It is up to the revenue here to chase them.
 
ubiquitous said:


When the Irish govt cut Capital Gains Tax to 20% in 1998, they said that it was only a temporary measure for 2 years at which time it would be brought back up to 60%.
Click to expand...

There is nothing as permanent as a temporary government measure ... reference the health levy in the 80's which is still with us. The current income levy will probably be still here in 2020.

Given the continuing slide of sterling, the gap between Uk and Rep of Irl prices can only widen going forward. Southern shoppers heading North will increase.

Currency and Vat account for some of the difference. We will give the benefit of the doubt and say additional transport, cost of sales for retailers and maybe buying power accounts for another %.
Still does'nt explain it away though.
 
ubiquitous said:


When the Irish govt cut Capital Gains Tax to 20% in 1998, they said that it was only a temporary measure for 2 years at which time it would be brought back up to 60%.
Click to expand...

Actually, McCreevy reduced CGT (excepting cgt applicable to disposals of development land) from 40% and 26% to 20% in that budget. And AFAIK there was no mention of it being a temporary measure.
 
I spent a couple of hours today ringing stove suppliers all over Ireland including Northern Ireland. There is a difference of €600 in the prices between the Rep and the North. So next week i'm taking a trip to NI to get it along with all the insulation for the house.

Im fed up of paying high prices for EVERYTHING here
 
just want to resurrect this thread. The UK and Irish governments are facing very similar economic outlooks (Economic slump, credit crunch, loss of conf, end of housing boom etc) and yet they have approached VAT in completely opposite ways. To my mind there are three reasons why this could be.
1....Economic conditions are in fact very different (the above para is very vague and the detail might be different) i doubt it
2....The two governments have different ideological views how to tackle the problem.
3....They are trying to tackle two different problems. Irish govt tackling the budget deficit. The british trying to get people to spend (in order to tackle the budget deficit)

instinctively the British approach makes more sense in the medium to long term.
What does anybody else think?

anon473
 
I would agree with you, the British budget seems to be thought out by an economist with the economy in mind. While the Irish budget seems to come from a civil servant with current spending in the public sector in mind. But then again I’m not an economist or a civil servant.
 
extopia said:
Actually, McCreevy reduced CGT (excepting cgt applicable to disposals of development land) from 40% and 26% to 20% in that budget. And AFAIK there was no mention of it being a temporary measure.
Click to expand...

This 1999 Revenue CGT Guide states "Disposals of land zoned for residential development under a County Development Plan on or after 6 April 2002 will be liable at 60%."

www.basis.ie/servlet/blobservlet/guidetoCGT.pdf?language=EN
 
Status
Not open for further replies.
Menu
Log in
Register