Money Matters

VAT rates in Ireland 2026: who qualifies for the 9% rate?

Understand which goods and services qualify for Ireland’s 9% VAT rate in 2026. Learn key changes from 1 July, common mistakes, and how to apply the correct VAT rate.

Published 26 June, 20266 min read Share

Key takeaways

• The 9% rate is expanding from 1 July 2026. Restaurant and catering food, plus hairdressing services, drop from 13.5% to 9%, so check whether your sales are affected.
• Not everything “hospitality” qualifies. Hotel and short-term accommodation stays at 13.5%, and alcohol, soft drinks, and bottled water stay at 23%.
• Newspapers and e-books are now 0%, not 9%. This is one of the most common rate mistakes, so update your records.
• Gas and electricity stay at 9% until 31 December 2030. The reduced rate on energy has been extended, giving longer-term certainty.
• Getting the rate wrong is costly. Underpaying VAT can trigger interest, penalties, and a Revenue audit, while overcharging can upset customers.

Charging the correct VAT rate is one of the simplest ways to stay compliant and protect your cash flow—and one of the easiest things to get wrong.

Ireland runs several VAT rates at once, and the rules change often.

The 9% second reduced rate causes the most confusion, partly because the goods and services it covers keep moving.

From 1 July 2026, that list changes again.

If you run a café, restaurant, takeaway, or salon, the rate you charge is about to drop.

This guide sets out who qualifies for the 9% rate in 2026, what does not, and the steps to apply the right rate with confidence.

Here’s what we’ll cover:

What qualifies for the 9% VAT rate in 2026?

The 9% second reduced rate currently applies to a defined list of goods and services, including:

• gas and electricity (extended to 31 December 2030),
• electric vehicle charging (also to 31 December 2030),
• the supply and installation of heat pumps, access to sporting facilities such as green fees and gym or sports club subscriptions,
• and the sale of completed apartments (from 8 October 2025 to 31 December 2030).

From 1 July 2026, two more categories join the 9% rate: food and drink sold as part of a restaurant, catering, or hot takeaway service, and hairdressing services.

This is the headline change for most small businesses, and it is confirmed in Budget 2026 and Revenue guidance.

What does not qualify (and where businesses slip up)

Plenty of items look like they should be 9% but are not.

Accommodation stays at 13.5%, so hotels, guesthouses, and other short-term lets do not move to 9%, only the food and catering side does.

Alcohol, soft drinks, and bottled water stay at 23%, even when served with a 9% meal.

Newspapers and e-newspapers have been zero-rated since 1 January 2023, and e-books and audiobooks since 1 January 2024, so they are no longer 9%.

General construction and cleaning services stay at 13.5% and are not part of the 9% cut.

The Irish VAT rates at a glance

Rate	Applies to (examples)
23% (standard)	Cars, electronics, alcohol, cosmetics, petrol, furniture, most non-oral medicines
13.5% (reduced)	Construction, cleaning, vet fees, coal and heating oil, short-term car hire, hotel accommodation
9% (second reduced)	Gas and electricity, sporting facilities, heat pumps; restaurant or catering food and hairdressing from 1 July 2026
0% (zero)	Most basic food, children’s clothing and footwear, oral medicines, books, newspapers, e-books

Ireland also has a 4.8% livestock rate for live cattle, sheep, and pigs, which most small businesses never use.

The big change: 9% for food, catering, and hairdressing

Budget 2026 confirmed a cut to 9% for restaurant and catering services and hairdressing, effective 1 July 2026. No expiry date for this cut has currently been announced.

The rate had been 9% during the pandemic, rose back to 13.5% on 1 September 2023, and now returns to 9%.

The cut applies to most food and non-alcoholic drink served in a restaurant, café, hotel restaurant, bar, or takeaway.

It does not apply to alcohol, soft drinks, or bottled water, which stay at 23%.

For takeaways, the rate depends on the specific product, because takeaway sales are treated as a supply of goods rather than a restaurant service.

What this means for your business

If you run a café or restaurant

Update your till and accounting software so food and non-alcoholic drinks move to 9% from 1 July 2026, while keeping alcohol and soft drinks at 23%.

Decide whether to pass the saving to customers or hold your prices.

If you run a salon

Hairdressing moves to 9% from the same date.

Review your pricing and point-of-sale settings so the new rate applies cleanly from day one.

If you run a hotel

Split your supplies carefully.

Restaurant meals move to 9%, but the room rate stays at 13.5%.

Where you sell a package such as bed and breakfast, Revenue expects you to apportion the price fairly between the accommodation and the meal.

Common mistakes to avoid

• Charging 9% on accommodation when it stays at 13.5%.
• Applying 9% to alcohol or soft drinks served with a meal.
• Still treating newspapers or e-books as 9% rather than 0%.
• Switching to 9% before 1 July 2026, when 13.5% still applies to food and hairdressing.
• Forgetting to update menus, price lists, and software on the changeover date.

How to check the correct rate: three steps

1. Identify the supply. Be specific about what you are selling, whether a hot meal, a haircut, a room, or a bottle of wine. The rate follows the exact good or service.
2. Match it to Revenue’s rate list. Use the official VAT rates database on Revenue’s website rather than memory, as categories change.
3. Confirm the date. Several 2026 rates depend on timing, so check whether the rule applies now or from a future date such as 1 July 2026.

What to do next

Set a reminder to review your VAT settings before 1 July 2026, and make sure your accounting software is mapped to the correct rate for each product and service.

To pull this together in one place, download the SME Compliance Checklist 2026 and work through it with your records to hand.

It walks you through the rate changes, the dates that matter, and the records Revenue expects you to keep.

Final thoughts

The 9% rate is welcome relief on energy costs and, from July, on food and hairdressing.

The rules are still strict, though, and the rate you charge depends on the precise supply and the date.

Apply it correctly, keep clear records, and check Revenue guidance whenever you are unsure.

Frequently asked questions on VAT rates in Ireland 2026

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