Factsheet for measure
IE-2020-40/1414
– measures in Ireland
New tax credit introduced to encourage spending in hospitality sector
Background information
The new stay and spend tax credit was introduced as part of the Government's July 2020 jobs stimulus plan. It aims to encourage spending on accommodation and food services in Ireland. These sectors have had a major impact from Covid-19 due to restrictions on opening and reduced footfall and turnover.
Content of measure
The scheme allows people to claim a certain amount of tax back on accommodation, food and non-alcoholic drink bought between 1 October 2020 and 30 April 2021.
The minimum spend is €25 per transaction and a copy of the receipt must be submitted with the claim.
The maximum tax credit available under the scheme is €125 per person or €250 for a couple who are joint assessed.
Taxpayers seeking to avail of the scheme can register by downloading an app - Revenue Receipts Tracker - and providing their name and PPS number. They must also have an income tax or USC liability against which the tax credit can be set. Qualifying people who don’t have a smart phone will also be able to make claim online or by post.
Use of measure
The Revenue estimates that up to 2.7 million taxpayers could qualify for the Stay and Spend
tax credit. This represents expenditure of up to €1.7 billion on qualifying holiday
accommodation and food and drink between 1 October 2020 and 30 April 2021.
The Irish Independent reported in January 2021 that there has been a low take up of the scheme. According to the paper, figures show that up to January 18, 4,441 claims for tax relief under the scheme were included in 2020 income tax returns, relating to €1.5m of qualifying expenditure that was submitted on Revenue's receipts tracker app. This entitles those who used the scheme to total tax relief of €305,430. Finance Minister Paschal Donohoe said that, up to last Monday, 43,196 receipts had been uploaded to the app recording expenditure of €6.8m - with a potential tax relief of €1.36m if all such expenditure is claimed and qualifies under the scheme.
Target groups
Actors and funding
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Actors
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Funding
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National government
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National funds
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Social partners
Social partners' role in
designing the measure
and form of involvement:
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Trade unions
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Employers' organisations
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Role
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Informed
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Informed
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Form
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Not applicable
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Not applicable
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Social partners' role in the
implementation, monitoring and assessment phase:
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No involvement
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Main level of involvement: Unknown
Involvement
The social partners were consulted prior to the July stimulus plan and Budget 2021.
Views and reactions
Employers have welcomed the scheme and called for additional supports for the sectors.
Sectors and occupations
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This case is sector-specific (only private sector)
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Economic area
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Sector (NACE level 2)
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I - Accommodation And Food Service Activities
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I55 Accommodation
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I56 Food and beverage service activities
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This case is occupation-specific
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Occupation (ISCO level 2)
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Hospitality, retail and other services managers
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Sources
