A group which represents NI retailers has warned that the VAT rise will have an adverse effect on border towns.
The NI Independent Retail Trade Association (NIRTA) said the rise from 17.5% to 20% was at a time when local retailers were already struggling.
NIRTA said businesses are also having to cope with increases in energy and transport costs.
The Chief Executive of NIRTA, Glyn Roberts, says the VAT rise will further decrease people crossing the border to shop in the North:
Meanwhile, The Chief Executive of the Letterkenny Chamber of Commerce, Toni Forrester, said this weeks VAT increase in the North, will create a 'more level playing field' in trying to stop Donegal shoppers from crossing the border: