Stay and Spend Tax Credit

Stay and Spend Tax Credit
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In response to the ongoing COVID-19 pandemic, the Irish Government introduced a number of jobs stimulus measures which included the introduction of the “Stay and Spend” Tax Credit scheme. This incentive has been introduced to encourage people to support the Irish tourism sector.

The credit will be available to taxpayers who incur qualifying expenditure from 1 October 2020 to 30 April 2021, subject to certain limits and conditions being met. There is no requirement for taxpayers to be on “staycation” to avail of the scheme. The maximum tax credit available under the scheme is €125 per person, or €250 in the case of a person who is married or in a civil partnership and is jointly assessed to tax. The credit can be offset against a liability to income tax and universal social charge (USC).

Qualifying Expenditure 

Qualifying expenditure includes expenditure on accommodation and food and non-alcoholic drink provided by a qualifying service provider.

Food and drink provided on a “take-away” basis is not a qualifying service.

The taxpayer must spend at least €25 on qualifying expenditure in a single transaction.

Using the new Revenue Receipts Tracker App, they must submit proof of expenditure with their claim, along with details of the service provider, type of service received, total amount of expenditure incurred and how much of that expenditure is not qualifying expenditure (i.e. expenditure on alcohol).

Qualifying Service 

Qualifying services include the provision of holiday accommodation and food and non-alcohol drinks by a “qualifying service provider”.

Qualifying criteria for Service Providers 

Holiday Accommodation

The holiday accommodation premises must be registered or listed with Fáilte Ireland.

Food and Drink

The food provided must be in a form suitable for human consumption without further preparation, supplied in a hotel, restaurant, café or licensed premises. The food and drink must be consumed on the business premises in which they are served.

Food and drink provided on a “take-away” basis is not a qualifying service.

The service providers should ensure that all receipts issued clearly show the name of the business that provided the service and an itemised breakdown of the services provided. Where a bill is split between two or more customers, each customer should receive

an individual receipt for the share of the services they have paid for.

The service provider must complete the Stay and Spend registration process and receive confirmation from Revenue that the service provider’s status is a qualifying service provider. A list of all qualifying service providers who are participating in the scheme will be

available on Revenue’s website in due course.

Registration for Service Providers

In order to register as a qualifying service provider, the business must:

  1. Provide qualifying services, i.e. holiday accommodation or “sit-in” food and drink;
  2. Be registered for VAT; and
  3. Hold valid tax clearance certificate.

Registration must be completed on Revenue Online Services (“ROS”) by accessing the “Stay and Spend – Service Provider Registration” link in “Other Services”. If registration is successful, a notice will be sent to the service provider’s ROS inbox. If registration is unsuccessful, the service provider will be advised that they are not a qualifying service provider along with the reasons that Revenue believe they do not qualify.

If you would like to speak to one of our tax team professionals about registering your business for the scheme or have any questions about the scheme.

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To discuss the above in further detail, please contact us

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