Ireland’s 9% VAT rate applies to specific goods and services rather than all businesses. Since 1 July 2026, the Government has reintroduced the 9% VAT rate for qualifying restaurant, catering, and hairdressing services to support businesses in these sectors. Understanding whether your business qualifies is essential to ensure you charge the correct VAT rate and remain compliant with Revenue requirements.
Whether you own a restaurant, café, takeaway, hotel, catering company, or hairdressing salon, this guide explains who qualifies for the 9% VAT rate, which services are included, and which supplies remain subject to other VAT rates.
For free Irish VAT calculators, guides, and tax resources, visit www.calculatevat.ie.
What Is the 9% VAT Rate?
The 9% VAT rate is one of Ireland’s reduced VAT rates. It applies only to specific goods and services defined by Irish VAT legislation. From 1 July 2026, qualifying restaurant and catering services, along with hairdressing services, moved from 13.5% VAT back to 9% VAT.
Businesses should not assume that every sale qualifies, as different VAT rates may apply depending on the products or services provided.
Which Businesses Qualify for the 9% VAT Rate?
The following businesses generally qualify for the 9% VAT rate on eligible services:
Restaurants
Restaurants serving food for immediate consumption generally charge 9% VAT on qualifying meals.
Cafés and Coffee Shops
Cafés and coffee shops supplying qualifying food and beverages can apply the 9% VAT rate to eligible items.
Catering Businesses
Professional catering services, including event catering and corporate catering, generally qualify for the reduced rate where the services meet Revenue’s conditions.
Hotels Serving Food
Hotel restaurants can apply the 9% VAT rate to qualifying restaurant and catering services. However, hotel accommodation itself remains subject to a different VAT rate.
Takeaway Food Businesses
Many hot takeaway food sales qualify for the 9% VAT rate, provided they fall within Revenue’s definition of catering or food services.
Hairdressers and Barbers
Hairdressing and barber services generally qualify for the 9% VAT rate from 1 July 2026.
Which Supplies Do Not Qualify?
Although many hospitality businesses benefit from the reduced VAT rate, not everything they sell qualifies.
Examples that generally remain subject to 23% VAT include:
- Alcoholic drinks
- Wine
- Beer
- Spirits
- Cocktails
- Soft drinks
- Bottled water
- Hair care products sold separately
- Retail merchandise
Businesses offering both qualifying services and retail products may need to apply multiple VAT rates on the same invoice.
Businesses That Usually Do Not Qualify
Most businesses outside the qualifying sectors continue to charge the standard 23% VAT rate or another applicable VAT rate.
Examples include:
- Retail shops
- Accountants
- Solicitors
- Builders
- Electricians
- Plumbers
- IT companies
- Marketing agencies
- Manufacturers
- Professional consultants
These businesses should continue using the VAT rate applicable to their goods or services.
How to Apply the Correct VAT Rate
If your business supplies different products or services, you may need to use more than one VAT rate.
For example, a hotel may charge:
- Accommodation – 13.5% VAT
- Restaurant meals – 9% VAT
- Alcohol – 23% VAT
Similarly, a hair salon may charge:
- Haircut – 9% VAT
- Shampoo sold to a customer – 23% VAT
Ensuring your accounting software and point-of-sale system are updated can help prevent costly VAT errors.
Benefits of the 9% VAT Rate
The reduced VAT rate provides several benefits for qualifying businesses, including:
- Lower VAT charged on eligible services
- Improved competitiveness
- Better cash flow management
- Potential savings for customers
- Support for hospitality and personal care sectors
The measure was introduced to help businesses manage rising operating costs while supporting employment and economic activity.
Common VAT Mistakes to Avoid
Businesses should avoid these common errors:
- Charging 9% VAT on products that should be charged at 23%.
- Using the wrong VAT rate for mixed invoices.
- Forgetting to update accounting software.
- Applying reduced VAT to ineligible services.
- Filing VAT returns with incorrect VAT classifications.
Regularly reviewing your invoices and VAT settings can help maintain compliance.
Frequently Asked Questions
Which businesses qualify for the 9% VAT rate in Ireland?
Businesses providing qualifying restaurant, catering, takeaway food, and hairdressing services generally qualify for the 9% VAT rate.
Does hotel accommodation qualify for 9% VAT?
No. Hotel accommodation remains subject to 13.5% VAT, although qualifying restaurant meals served by hotels are generally taxed at 9%.
Are alcoholic drinks charged at 9% VAT?
No. Alcoholic beverages continue to be subject to the 23% standard VAT rate.
Do hair products qualify for 9% VAT?
No. Hairdressing services generally qualify for 9% VAT, but retail hair products sold separately are generally charged at 23% VAT.
How can I calculate 9% VAT?
You can quickly add or remove 9% VAT using the free VAT calculator available at www.calculatevat.ie.
Conclusion
The 9% VAT rate in Ireland applies to specific sectors, including qualifying restaurant, catering, takeaway food, and hairdressing services. However, many businesses will continue to use multiple VAT rates because products such as alcohol, soft drinks, retail hair products, and hotel accommodation remain subject to different VAT rates.
Understanding which supplies qualify helps businesses invoice correctly, remain compliant with Revenue, and avoid costly VAT mistakes.
For free Irish VAT calculators, VAT guides, and practical business resources, visit www.calculatevat.ie.