The estimated first and full-year cost of introducing a special 9% VAT rate on residential construction

QUESTION

To ask the Minister for Finance the estimated first and full-year cost of introducing a special 9% VAT rate on residential construction.
REPLY



I am advised by Revenue that a tentative estimate of the cost of introducing a 9% VAT rate specific to residential construction is in the region of €270m in the first year and €310 for a full year.

This estimate is based on extrapolation from data held by Revenue, the Central Statistics Office and the Department of Housing, Planning and Local Government in relation to the projected level of residential completions for 2020 and the average selling price of such properties. It does not take account of any behaviour change in the market as a consequence of the proposed measure.