VAT changes in Budget 2012

The standard rate of Vat in Budget 2012, as previously confirmed, was increased from 21% to 23% in Ireland.

We have included an estimate of how much this Vat increase will cost you in Budget 2012.  As this is an indirect cost, it will be very difficult to guess how much it will cost an average tax payer.

For instance, if you choose to buy a new car in 2012, you will be take on a very big hit for this change in VAT.  but overall, it is estimated that the VAT change will cost households an average €500.  But for most of us (i.e. if you don’t buy a car this year), it will be less than that.

For our Budget Calculator, we have asked you to input your typical weekly household spend, excluding Motor fuel, which is looked at separately.  Also exclude your financial payments, such as Mortgage, rent, loan interest, medical & house insurance.  We have assumed that 2/3’s of your spend will be chargeable at the standard rate of VAT in coming up at the cost to you.