Government launches the Stay and Spend Scheme to Support the Hospitality Sector

Stay and Spend is a tax scheme aimed at consumers to help drive sales in the hospitality sector during the off-season
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Stay and Spend is a tax scheme aimed at consumers to help drive sales in the hospitality sector during the off-season which has been negatively impacted as a result of COVID-19.  The scheme will provide a maximum of €125 in income tax credits to tax-payers who spend up to €625 in restaurants, pubs, hotels, B&Bs and other qualifying businesses, from Autumn 2020 through to Spring 2021, including over the Christmas period.

Where a taxpayer has insufficient income tax liability to fully benefit from the measure, they may still avail of the relief against their USC contributions.  The taxpayer can submit receipts via the newly updated and easy-to-use Revenue Receipts Tracker mobile app.

The Stay and Spend Scheme is being supported by Fáilte Ireland, the National Tourism Development Authority, who will both promote the scheme to consumers and encourage businesses to register to participate with a national radio and press campaign kicking off on Saturday, 5th September.

The Stay and Spend Scheme runs from 1st October 2020 to the 30th April 2021.  To find out more, and view the list of participating businesses visit www.revenue.ie. You can download the new Revenue Receipts Tracker App in the Apple Store or Google Play Store.

Registration to participate in the scheme is now open for tourism accommodation and food and beverage businesses through Revenue’s Online Service, ROS.

Summary of Stay and Spend Scheme

At the level of individual taxpayer:

  • Relief on accommodation and food, including soft drinks, but not including alcohol.
  • In the case of food, consumption on the premises is required.
  • A minimum spend of €25 per person per time/ Maximum spend limit of €625 (VAT inclusive) over life of scheme,
  • Refund of 20% of the vouched cost through income tax i.e. maximum tax credit of €125 per person. (For married couples who are jointly assessed, the maximum spend over the life of the scheme will €1,250).
  • Where an individual or jointly assessed tax-payer has insufficient income tax liability to fully benefit from the measure, they may still avail of the relief against their USC contributions.
  • Operated through downloadable easy-to-use Revenue mobile phone app.

At the level of the business:

  • VAT registered provider with current tax clearance.

Duration

  • Scheme will run from 1 October 2020 – 30 April 2021, including over the Christmas period. The expiry date may be altered by order made by the Minister for Finance.

Purpose of the scheme

The purpose of the scheme is to incentivise taxpayers to support registered/accredited providers of accommodation and/or food during the off-season, thus providing support to a particularly vulnerable sector.

Qualification Criteria

Businesses: In order to qualify for participation in the scheme, businesses will need to:

  • be registered for VAT,
  • have a current tax clearance certificate,
  • be accredited/registered with relevant official bodies as appropriate (Fáilte Ireland and the HSE Environmental Health Service),
  • register with Revenue to participate, and
  • display appropriate signage indicating participation in the scheme.

Individual taxpayers: To benefit from the scheme, an individual will need to:

  • register for the scheme by downloading the app and provide his/her name and PPS Number in the course of using the app, and
  • have an income tax or USC liability against which the tax credit can be set.

Operation of the scheme

An individual taxpayer must spend a minimum of €25 each time on qualifying expenditure (accommodation, food and non-alcoholic drinks) as verified by a receipt from the relevant establishment. The taxpayer will submit the receipt by taking a photograph of same using a mobile phone and submitting same to Revenue using the mobile app. The taxpayer may continue to submit receipts until the cap on expenditure of €625 is reached. Revenue will provide an income tax credit of up to €125 (€625 @20%) per taxpayer (up to €250 in the case of a married couple, jointly assessed) in end of year balancing statement. The taxpayer will get the benefit of the credit in the year after the expenditure is incurred.

 

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