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VAT for Hairdressers in Ireland: Applying the Correct Rate

VAT for Hairdressers in Ireland: Applying the Correct Rate

If you own or manage a hairdressing salon in Ireland, understanding the correct VAT rate is essential. Charging the wrong VAT rate can lead to accounting errors, incorrect invoices, and potential issues with Revenue.

In this guide, we’ll explain the current VAT rate for hairdressing services in Ireland, which salon services are covered, when VAT registration is required, and how to stay compliant with Irish VAT rules.

For free VAT calculators, guides, and business resources, visit www.calculatevat.ie.

What Is the VAT Rate for Hairdressers in Ireland?

From 1 July 2026, hairdressing services in Ireland are generally subject to the 9% VAT rate, also known as the second reduced rate of VAT. This rate replaced the previous 13.5% rate for qualifying hairdressing services.

Which Hairdressing Services Qualify for 9% VAT?

The reduced VAT rate generally applies to professional hairdressing services provided by salons and barbers.

These typically include:

  • Hair cutting
  • Hair colouring
  • Hair styling
  • Blow dries
  • Highlights
  • Hair treatments
  • Barber services
  • Children’s haircuts

These services are generally charged at 9% VAT.

Does VAT Apply to Hair Products?

Yes. Hair products sold separately are usually treated differently from hairdressing services.

Examples include:

  • Shampoo
  • Conditioner
  • Hair wax
  • Hair gel
  • Hair spray
  • Brushes
  • Hair care products

These retail products are generally subject to the 23% standard VAT rate, while the hairdressing service itself is charged at 9% VAT, meaning salons often need to apply different VAT rates on the same invoice depending on what is being sold.

Do Hairdressers Need to Register for VAT?

Hairdressers may need to register for VAT once their taxable turnover exceeds the applicable Revenue registration threshold.

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Once registered, a salon must:

  • Charge the correct VAT rate.
  • Issue VAT invoices where required.
  • Submit VAT returns on time.
  • Keep accurate accounting records.
  • Pay VAT collected to Revenue.

If you’re unsure whether your business needs to register, it’s worth checking the latest Revenue guidance.

How to Calculate VAT on Hairdressing Services

Calculating VAT is straightforward once you know the correct rate.

For example:

Haircut price before VAT:

€50

VAT at 9%:

€4.50

Total charged to customer:

€54.50

Using a VAT calculator makes these calculations quick and accurate.

Charging Different VAT Rates in a Salon

Many salons provide both services and retail products.

For example, a customer may purchase:

  • Hair colouring service
  • Haircut
  • Shampoo
  • Hair treatment products

The invoice may contain:

  • Hairdressing services at 9% VAT
  • Retail products at 23% VAT

Using salon software or an accounting system that supports multiple VAT rates can help prevent mistakes.

Can Hairdressers Reclaim VAT?

If your salon is VAT registered, you can generally reclaim VAT on qualifying business purchases, including:

  • Salon furniture
  • Hairdressing equipment
  • Professional tools
  • Business insurance (where VAT applies)
  • Cleaning products
  • Professional supplies
  • Computer equipment
  • Accounting services
  • Marketing services

The purchase must be used for your business, and you should keep valid VAT invoices to support your claim.

Common VAT Mistakes Hairdressers Should Avoid

Many salons make avoidable VAT errors.

Some of the most common include:

  • Charging the wrong VAT rate.
  • Applying 9% VAT to retail products that should be charged at 23%.
  • Forgetting to register for VAT when required.
  • Failing to keep proper VAT invoices.
  • Mixing personal and business expenses.
  • Filing VAT returns late.
Read Also:  Irish Budget 2026: VAT Threshold Changes For Small Businesses

Keeping accurate records and reviewing your invoices regularly can help avoid costly mistakes.

Tips for Staying VAT Compliant

Good VAT management helps your salon operate smoothly.

Some best practices include:

  • Use accounting software that supports Irish VAT rates.
  • Keep all purchase invoices.
  • Review VAT rates regularly.
  • Separate services from retail sales.
  • File VAT returns before the deadline.
  • Work with an accountant if your business is growing.

Frequently Asked Questions

What VAT rate do hairdressers charge in Ireland?

Hairdressing services are generally charged at 9% VAT from 1 July 2026.

Do barbers charge the same VAT rate?

Yes. Barber services generally qualify for the same 9% VAT rate.

Are hair products charged at 9% VAT?

No. Hair products sold separately are generally subject to the 23% standard VAT rate.

Can a salon reclaim VAT on equipment?

Yes. VAT-registered salons can generally reclaim VAT on qualifying business purchases, provided Revenue’s conditions are met.

How can I calculate VAT for my salon?

You can quickly add or remove Irish VAT using the free VAT calculator available at www.calculatevat.ie.

Conclusion

Understanding the correct VAT rate is essential for every hairdresser and salon owner in Ireland. Since 1 July 2026, qualifying hairdressing services are generally charged at 9% VAT, while many retail hair products remain subject to the 23% standard VAT rate. Applying the correct rate, maintaining accurate records, and submitting VAT returns on time will help keep your business compliant and avoid unnecessary tax issues.

For free Irish VAT calculators, VAT guides, and practical business resources, visit www.calculatevat.ie.

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