Stay and Spend Tax Credit
- Introduction
- Who is entitled to claim?
- What expenses qualify for the credit?
- Rates
- How can I make a claim?
- How will the relief be given?
- More information
Introduction
The Stay and Spend Tax Credit 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. This spending is known as qualifying expenditure.
Under the scheme:
- A transaction must be at least €25
- You can submit receipts up to a total of €625, or €1,250 for a jointly-assessed married couple
- The maximum tax credit you can get is €125, or up to €250 for a jointly-assessed married couple
All claims must be made within 4 years from the end of the tax year in which you made the qualifying expenditure. For money spent between 1 October 2020 and 31 December 2020, you must claim the tax credit by 31 December 2024.
To check if a business took part in the scheme, see 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 have been on a ‘staycation’ to avail of the scheme. You can claim for expenses you paid in your local area if they qualify.
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.
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 a claim online
Stage 1: Submit your receipts
You can use the Revenue's receipts tracker 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 a claim online
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.
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 in Revenue's manual on Stay and Spend Tax Credit (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.
More information
You can get information on the Stay and Spend Scheme on revenue.ie or by contacting Revenue.