The Revenue Commissioners warned a controversial cut in VAT on apartments could lead to fraudulent or inadvertent underpayments of tax by the construction sector. However, internal records reveal concerns were raised that having different VAT regimes for houses and apartments was risky. A note from Minister Donohoe said: “We will go ahead with VAT on apartments only, beginning night of Budget. “This decision is aligned with broader housing [and] economic policy goals.” In the submission, officials explained how many apartments were not viable to build and that the VAT cut could help bridge that gap. It said the intention was to encourage more development “rather than leading to a reduced price for the consumer.” Officials said the VAT cut would apply to all apartments, from “high value accommodation” to those built for social housing.

Source: Irish Examiner December 29, 2025 14:01 UTC