9% VAT Rate Returns for Hospitality Sector from July 2026
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?
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Or contact usLast updated: 11th June 2026