The rate is going down from to 9%.
Businesses will now get up to €5,000 a week if they're forced to close due to covid-19 restrictions.
The payment will be calculated based on its 2019 weekly turnover.
Ian Talbot from Chambers Ireland says it will enable firms to plan ahead:
The VAT reduction in the Budget is being widely welcomed by the hospitality sector.
Dara Cruise, manager of the Midlands Park Hotel in Portlaoise, is glad the government has responded to the ongoing calls to bring the rate down from 13.5 to 9 per cent:
The Tanaiste says the Government is putting a lot of faith in businesses who access the covid restriction support scheme.
Business groups have largely welcomed the supports outlined in Budget 2021.
Retail Ireland has welcomed the promise of no cliff edge for the wage subsidy scheme - which will go to the end of 2021 if needed- but said the eligibility criteria remains too rigid.
The most significant support announced for businesses today was the covid restrictions surpport scheme, which will put up to 5 thousand euro into businesses owners hand each week if they're closed or down 80 percent turn over due to restrictions.
The restaurant sector has been one of the hardest hit since the pandemic began.
CEO of the Restaurants Association is Adrian Cummins:
There will also be 50 million euro for the live entertainment industry in a fund.
Minister @RobertTroyTD: "I very much welcome the creation in the Budget of a dedicated Recovery Fund to deal with the effects of Covid and Brexit.— Department of Business, Enterprise and Innovation (@EnterInnov) October 13, 2020
"2021 is the year where we can get back to promoting Ireland, drive exports and diversify our market reach."#Budget2021 pic.twitter.com/Fp7MkMJxxD