Stay and Spend Tax Credit

Introduction

To encourage people to spend money on accommodation and food in Ireland, the Government announced a new ‘Stay and Spend Incentive’. The scheme allows you to claim a certain amount of tax back on accommodation, food and non-alcoholic drink bought between 1 October 2020 and 30 April 2021 – known as qualifying expenditure.

Under the terms of the incentive:

  • You must spend a minimum of €25 in a single transaction on qualifying expenditure and submit the receipt to Revenue
  • You can submit receipts up to a total of €625, or €1,250 for a jointly-assessed married couple
  • Revenue will provide an income tax credit of up to €125 per person, or up to €250 for a jointly-assessed married couple

You do not need to be on a ‘staycation’ to avail of the scheme – see ‘who is entitled to claim the credit?’ below.

To check if a business is participating in the scheme, look out for the ‘Stay & Spend Tax Credit’ logo or you can check Revenue’s list of qualifying service providers.

Who is entitled to claim?

Any taxpayer who spends at least €25 in a single transaction on ‘qualifying expenditure’ between 1 October 2020 and 30 April 2021 is eligible to claim the Stay and Spend tax credit.

You do not need to be on a ‘staycation’ to avail of the scheme. You can claim for expenses you paid in your local area if they meet the definition of qualifying expenditure – see ‘what expenses are covered?’ below.

What expenses qualify for the credit?

You can claim on the following expenses:

  • Accommodation
  • Food and non-alcoholic drink

The minimum spend per transaction is €25. You must have spent the money between 1 October 2020 and 30 April 2021.

Accommodation

Qualifying accommodation is accommodation that is registered with Fáilte Ireland, including:

  • Hotels, guest houses, B&Bs
  • Self-catering
  • Caravan parks, camping parks and holiday camps

Food and non-alcoholic drink

Food and drinks served in a café, restaurant, hotel or pub can also qualify for relief.

The following expenses do not apply:

  • Takeaway food
  • Alcoholic drinks
  • Drinks (either alcoholic or non-alcoholic) served without food
  • Amounts below €25

You can check that your accommodation or food and drink provider is participating in the scheme using Revenue’s list of qualifying service providers.

Rates

The Stay and Spend tax relief is given at the standard rate of 20% up to a maximum refund of €125 per person, or €250 for a jointly-assessed married couple.

The amount of qualifying expenses is capped at a total of €625 per person, or €1,250 for a jointly-assessed married couple.

Where a bill is split between two or more people, you should only include the share of the bill which you actually paid in your claim. If possible, where a bill is split between two or more customers, service providers should give each customer an individual receipt for the services they have paid for.

I am a service provider – how can I register for the scheme?

To register for the scheme with Revenue you must:

The registration process for service providers is now open. You can register for the scheme on Revenue Online Service (ROS).

To register, follow these steps:

  1. Log in to your ROS account
  2. In the ‘Other Services’ section click on ‘Stay and Spend – Service Provider Registration’
  3. Enter the following details:

You can get a more detailed step by step guide on how to complete the registration process in Revenue's Tax and Duty manual (pdf).

After registering you will receive a certificate from Revenue confirming your status as a qualifying service provider in your ROS inbox. You should then display a ‘Stay & Spend Tax Credit’ logo or other appropropriate signage to show your participation in the scheme.

I am a taxpayer – how can I make a claim?

You can only claim for Stay and Spend expenses if you have receipts to prove your claim.

You do this in two stages:

  • Stage 1: Submit your receipts
  • Stage 2: Make an electronic claim for the Stay and Spend tax credit

Stage 1: Submit your receipts

The easiest way to submit your receipts is using the Revenue Receipts Tracker mobile app.

To submit details of expenditure through the app, you should follow these steps:

  1. The first time you log in, you will be asked if you want to sync any receipts you record onto the app to Revenue storage (if you do, you will not have to keep paper copies)
  2. To record an expense, select ‘Stay and Spend’ from the list of categories
  3. Choose the type of qualifying service – either ‘accommodation’, ‘accommodation and food’ or ‘food’
  4. Next enter the following details:
    • Name of the business
    • Date of the expense
    • Total of bill
    • Alcohol amount (if applicable)
  5. Click on ‘add receipt’ and upload a copy of the receipt to the app

You can also use the receipts tracker service in Revenue's myAccount to store your receipt details online.

You can continue to add receipts until you reach the cap on expenditure of €625, or €1,250 for a jointly-assessed married couple.

Stage 2: Make an electronic claim

If you pay tax through PAYE you can make your claim by submitting the Income tax return (Form 12) for the 2020 period in myAccount.

If you are self-employed you can make your claim by submitting the Form 11 for the 2020 period in ROS.

Both Form 11 and Form 12 for the 2020 period will be available from 1 January 2021. You should submit your receipts (as proof of expenditure) before you submit your return – see ‘Stage 1’ above.

You can get a step by step guide on how to upload a receipt and submit a claim for the Stay and Spend tax credit in Revenue's Tax and Duty manual (pdf).

How will the relief be given?

The Stay and Spend tax credit will reduce the amount of income tax you have to pay (known as your income tax liability). The credit is deducted after all other allowances, deductions or reliefs have been given to you.

If the tax credit is higher than your income tax liability in the year of assessment, any excess credit can be taken away from the USC you have to pay in that same year.

The credit can be used to reduce your liability to income tax and USC in the year of assessment to nil. In cases where the tax credit available is higher than your combined liabilities to income tax and USC in the year of assessment, you will be unable to fully use the credit due to you.

Read more information on how your tax is calculated.

Further information

Additional information is available on Revenue's website or from PAYE Lo-call service.

You can get more information about how to register for and access myAccount or ROS, and how to submit a tax return through myAccount or ROS on Revenue’s website.

Page edited: 4 September 2020