Government announced the following tax measures in the recent Cost-of-Living Package.
Temporary Business Energy Support Scheme (TBESS)
TBESS will be extended to 31 May 2023. The “energy cost threshold” will be reduced from 50% to 30%. To that end eligible businesses should qualify for the scheme where they experience an increase of at least 30% in the average unit price of its electricity and/or gas bill for a claim period when compared with the corresponding period in the previous 12 months.
The reduced energy costs threshold should apply retrospectively from 1 September 2022.
From 1 March the monthly cap will increase from €10,000 to €15,000 per trade or profession. The maximum monthly amount that can be claimed where a qualifying business operates across multiple locations will increase from €30,000 to €45,000 Some of the above changes are subject to state aid approval from the European commission.
The 9% rate of VAT that currently applies to supplies of electricity and gas will be extended to 31 October 2023. The 9% rate of VAT that is currently applying to the hospitality and tourism sectors will be extended to 31 August 2023.