Ireland cuts restaurant, takeaway and hairdressing VAT to 9%
- Jurisdiction
- Ireland
- Tax
- VAT
- Change type
- Rate change
- Status
- In force
- Announced
- 1 December 2025
- Effective
- 1 July 2026
- Authority
- Irish Statute Book (electronic Irish Statute Book, Office of the Attorney General)
- Verified
- Fetched from official source · high confidence
Restaurant, catering and hot-takeaway food and drink, plus hairdressing, from 1 July 2026. Alcohol, bottled water and soft and sports drinks stay at 23% even when served alongside — so a single bill can straddle both rates.
Finance Act 2025 (Act No. 18 of 2025), section 71, amends section 46 of the VAT Consolidation Act 2010 so that from 1 July 2026 the 9% second reduced rate of VAT applies to food and drink for human consumption supplied as part of a restaurant, catering or hot takeaway service, and to hairdressing services; alcohol, bottled water, soft and sports drinks remain at the 23% standard rate, and hotel/short-term accommodation and admissions to tourist attractions are not included.
What changed in detail
Finance Act 2025 (Act No. 18 of 2025), section 71, applies the 9% second reduced rate from 1 July 2026 to food and drink supplied as part of a restaurant, catering or hot-takeaway service, and to hairdressing; alcohol, bottled water and soft/sports drinks stay at the 23% standard rate, and accommodation and tourist-attraction admissions are excluded.
What it means
This is a genuine rate cut for the hospitality sector — from 13.5% down to 9% on prepared food, plus hairdressing — but it is carefully fenced. Drinks and accommodation are deliberately left out, so a restaurant bill will straddle two rates. Verify an Irish VAT number with the Ireland validator.
Proof
Amendment of section 46 of Principal Act (reduced rate for electricity and gas) 70.
Source snapshot of the official page. Open full size ↗Sources
- Finance Act 2025 (Number 18 of 2025), section 71 — Amendment of section 46 of Principal Act (reduced rate for food and drink for human consumption and hairdressing services)
- Finance Act 2025 — VAT Notes for Guidance (9% second reduced rate on restaurant/catering food and drink and hairdressing services from 1 July 2026)