Ireland tax rises to support Corporate Tax rate
Ireland has increased its standard Value Added Tax rate from 21% to 23% from 1 January 2012. This follows the major economic dip suffered following the 2007/08 financial crisis and subsequent Euro currency crisis.
The main reduced VAT rates of 13.5% and 9% will remain unchanged.
Ireland now has one of the highest VAT rates in Europe, partially to compensate for the very low Corporate Income Tax rate of just 12.5%. The Czech Republic will increase its rate to 21%.
Many other European states have been forced into austerity VAT rate changes include: Hungary, France, Spain, Greece, Czech Republic.
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