VAT for Catering, Hairdressing to Be Cut From 13.5% to 9%

Conamara café owner says VAT cut will barely offset other cost increases he's facing

Although it seems a reduction in VAT for hospitality businesses next year may cut costs, other Budget measures such as extra payments for pensions and a rise in the minimum wage almost cancel these out, says a café owner in Conamara.

Opposition slams 'McBudget' as fast food chains will majorly benefit from VAT reduction - Irish Mirror

The hospitality sector is the big winner of Budget 2026 as a long-awaited VAT reduction will come into place in July

VAT for catering, hairdressing to be cut from 13.5% to 9%

The Government is reducing the VAT rate for food and catering businesses, and for hairdressing services from 13.5% down to 9%.

Budget 2026: All you need to know as Government outline €9.4 billion package - Laois Today

Budget 2026 was unveiled by Minister for Finance Paschal Donohue and Minister for Public Expenditure Jack Chambers today. The €9.4 billion package has been welcomed by Laois Fine Gael TD Willie Aird. He particularly noted the cut in the VAT rate for small businesses which was announced in Budget 2026 this afternoon. He said: “This reduction in VAT from 13.5% to 9% announced today will be a permanent measure and will help increase cashflow for re…

VFI say Budget 2026 'leaves traditional pubs behind' after 9% VAT relief announced

The Vintners Federation of Ireland (VFI) have said that measures announced in Budget 2026 ‘leaves thousands of traditional pubs behind’. The VAT cuts from 13.5% to 9% in the hospitality sector, which has been called for by hospitality operators for a number of years, has finally been announced in the 2026 Budget — but will not be implemented until July 2026. Despite the fact that the VAT rate has been cut, the VFI have said that while it’s welco…

Budget 2026: Hospitality Sector VAT Rate Lowered to 9%, but Scope Remains Narrow

The Government has, as widely expected, confirmed the permanent lowering of the VAT rate for the hospitality sector. The return to 9% VAT for hospitality businesses – down from the current 13.5% – has been called for by the industry for some time and has been promised by Government for months. In his Budget 2026 address, Finance Minister Paschal Donohoe confirmed the VAT rate reduction for hospitality (those focusing on food and catering) from J…