The Irish Department of Finance has confirmed that the reduced 9% VAT rate for food and catering services and hairdressing services became permanent on 1 July 2026. The change replaces the previous temporary measure and establishes the reduced rate without an expiry date.
The announcement includes the following key points:
The VAT rate for food and catering services and hairdressing services has been permanently reduced from 13.5% to 9%, effective 1 July 2026.
Hotel accommodation remains subject to the standard 13.5% VAT rate.
The 9% VAT rate applies to food and catering services provided by hotels.
The permanent rate was announced as part of Budget 2026 and is consistent with the Government’s Programme for Government commitment.
According to the Department of Finance, more than 99% of businesses operating in the affected sectors are small and medium-sized enterprises (SMEs), with more than half classified as microenterprises employing fewer than ten people. The government also stated that approximately 85% of the financial benefit of the measure is expected to be received by SMEs.
The permanent reduction replaces the previous temporary arrangement and establishes the 9% VAT rate as the ongoing rate for the qualifying services.
Source: gov.ie
Published on July 13, 2026