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Businesses should prepare now for the introduction of the 9% VAT rate from 1 July 2026.

 
The return of the 9% VAT rate will provide a welcome reduction for many hospitality and tourism businesses. The change was introduced in the Finance Act 2025 and Revenue have now issued updated guidance ahead of the change on 01 July 2026. Hospitality, accommodation, food service and tourism businesses should take note and prepare for the changes.
 

Who is affected by the VAT change?

From 01 July 2026 the 9% rate will apply to:​
 
  • Hotels, guesthouses, B&Bs and holiday accommodation  
  • Restaurants, cafés, catering and hot takeaway food  
  • Tourism attractions, cultural admissions and guided tours
  • Events, cinemas, theatres and certain leisure activities  
  • Hairdressing and some personal services  
  • Newspapers and qualifying printed matter
 

What is not changing?

The following business will remain at 13.5%:
 
  • Construction services and building materials  
  • Heating fuels  
  • Cleaning and veterinary services  
  • Most professional and property related services  
 
The 23% and 0% VAT rates are also unchanged.
 

What should businesses do now to prepare for the VAT change?

Businesses should take steps now to ensure they are ready for the VAT rate change including:
 
  • Update POS systems, online ordering and invoicing software 
  • Review pricing, menus and promotional materials
  • Check VAT treatment for advance bookings and deposits  
  • Ensure correct VAT separation for mixed rate supplies  
 
If you would like further information on the VAT rate the Revenue’s updated VAT guidance is available online.
 

Need an accountant for your VAT Returns?

Contact TaxAssist Accountants for a free, no-obligation consultation to get a fixed fee quote

091 39 44 11

Or contact us

Last updated 11 Jun 2026 | First published 11 Jun 2026


Gearoid Condon, FCA

Gearoid is a highly experienced Chartered Accountant with 25 years of expertise in business consultancy, specialising in supporting SME business owners. Gearoid has worked with start-ups and with established businesses to improve the way they run, with particular focus on growth, efficiency, and structuring operations. Through his experience Gearoid has a strong understanding of the tax system and business regulations in Ireland.

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