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Withdrawals of VAT Concession
For a number of years, The Revenue has operated a concession, whereby service charges on hotels and restaurants were not regarded as part of the taxable amount if they were distributed in full to staff.
In March 2001, the European Court of Justice, in a case taken against the French Government, ruled that this type of concession was not valid and did not meet the obligations under the EU VAT Directives. As a result France withdrew their concession in October 2001.
The Irish Revenue has now decided to withdraw the similar concession, in Ireland, with the effect from 1 September 2008. From this date, hotels and restaurants will have to account for VAT on all amounts included on bills to the customer, including service charges. This applies whether service charges are distributed to staff in full or in part.
Voluntary payment (tips) made by customers and not included in the bill present to the customer will continue to be outside the scope of the VAT.
From 1 September 2008, all service charges included in the hotel and restaurant bills will be subject to VAT at 13.5%.
We would advise all Members to check carefully their billing and VAT accounting systems to ensure that, where they apply a service charge, they will comply with the revised requirement with effect from 1 September 2008.
Dublin City Council has approved plans for a major revamp of Dublin’s Gresham Hotel which will it expand the number of its bedrooms by almost 505. Owner Precinct Investment has secured permission for significant expansion and refurbishment of the hotel, including the addition of 179 new hotel rooms and a new glazed conference facility on the eight floor.
Designed by architects Cantrell and Crowley, the plans for the 288-bedroom hotel also include a day spa, fitness area and courtyard garden at first floor level.
The hotel’s restaurant and a new shop will be at Cathal Brugha Street along with the kitchens and a new function room. A new executive lounge and roof garden will be at seventh floor level.With the barbeque season upon us, safefood and award winning chef Neven Maguire team up to encourage good food safety practices.
safefood has teamed up with award winning chef Neven Maguire to encourage consumers to follow good food safety practices when preparing and cooking food. New safefood research revealed that when preparing food, 52% of people chopped lettuce on a chopping board that had been used for raw meat without washing it first. This practice is a cause for concern as it can potentially expose the consumer to the perils of food poisoning.
Dr. Thomas Quigley, Director, Science and Technical, safefood explains, “The spread of dangerous bacteria such as E. coli and Campylobacter through cross contamination is extremely common when preparing a meal, either for a BBQ or a meal indoors. It is important that different cooking utensils and clean or separate chopping boards are used for raw and ready-to-eat foods to prevent the spread of dangerous bacteria.”
Consumers were observed in a test kitchen and the results revealed that of those that did wash the chopping board, 66% did not wash it properly with hot soapy water. 32% of participants still had bacteria from raw meat on their hands when they left the kitchen. Also, 90% of kitchens tested positive for raw meat bacteria at the end of food preparation .
“Our research also revealed that two thirds (66%) of people did not check to make sure beef burgers were cooked thoroughly by cutting into the burger. Quarter of the burgers were also found to be underdone minced, skewered or rolled such as burgers, sausages and kebabs should be cooked thoroughly and never served rare or pink in the middle. When meat is chopped or minced, any bacteria present are moved around and into the centre of the food. These meats must be cooked thoroughly until piping hot all the way through, the juices run clear and until there is no pink meat left to kill any bacteria that could cause food poisoning,” Dr Quigley continued.
Supporting safefood’s focus on food safety, Neven Maguire said: “Cooking on the barbecue can be a fun and relaxing way of eating healthily over the summer months. However, putting together a healthy balanced menu for friends and family is pointless if the meat is not cooked thoroughly. Good food hygiene practices such as hand washing and using separate utensils and clean or separate chopping boards for salads and raw meat are easy to follow, and prevent the spread of bacteria. By following safefood’s advice eating outdoors will be a safe, enjoyable and healthy experience – and all you will have to worry about is the weather!”.
safefood’s advice for preparing food to enjoy barbecues and outdoor eating is:
Earlier, an analysis carried out by the Unite trade union found that the average profit made by Irish companies is 55% higher than the euro zone average and more than double the figure for UK firms.
The union says its findings are drawn from OECD, EU and CSO figures up to 2006, and show that Irish firms make €45,800 gross profit per employee. Unite claims the findings show that recent calls by employers for wage freezes are based on 'false analysis' of Irish companies' health.
The union says its report strips out accounting practices which may distort profit figures.
But IBEC director Brendan McGinty accused the union of failing to acknowledge the 'dramatically changed' economic conditions now facing the country. "The private sector is not prepared to pay for higher public sector pay growth through the loss of their jobs or businesses", he said.
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