Ireland VAT Rates: 2026 Changes

VAT Rate Changes in Ireland: State Budget 2026

The Irish Government announced several significant VAT rate changes as part of Budget 2026. The key measures include reductions to 9% across a number of sectors:

• A reduction in VAT on the sale of new apartments from 13.5% to 9%, effective from 8 October 2025 and running to 31 December 2030.
• A reduction in VAT for restaurant and catering services and hairdressing from 13.5% to 9%, taking effect from 1 July 2026.
• An extension of the lower 9% VAT rate for utility bills (electricity and natural gas) through to 31 December 2030.

The measures are designed to ease cost pressures for households, stimulate activity in the hospitality and construction sectors, and bolster housing supply and affordability.

Restaurant and Catering Services: 9% Rate Confirmed from 1 July 2026

Revenue has now issued the updated Tax and Duty Manual – VAT Treatment of Restaurant and Catering Services, formally confirming that the second reduced VAT rate of 9% applies to restaurant and catering services as from 1 July 2026. Until that date, the reduced rate of 13.5% continues to apply.

It is important to note that the supply of takeaway food is treated as a supply of goods rather than a restaurant service, meaning different rates apply depending on the specific goods supplied. Learn more.

Canteen Services

Canteen arrangements can take various forms — operated on a profit-making basis, outsourced, or provided without charge to staff — and the VAT treatment will depend on the specific arrangement in place. Further guidance is available in Revenue's Tax and Duty Manual on canteen services.

Accommodation Combined with Meals

Revenue has also updated the Tax and Duty Manual – VAT Treatment of Guest and Holiday Accommodation (eBrief 86/2026, published 28 April 2026) to clarify the VAT treatment of packages combining accommodation and meals. Where accommodation and meals are sold as a single package (e.g. bed and breakfast), this constitutes a multiple supply for VAT purposes, and the package price must be fairly apportioned between its components:

• Accommodation: 13.5% (reduced rate)
• Meals / restaurant services: 9% (second reduced rate) or 23% (standard rate)

The apportionment should be based on the individual selling prices of each component if sold separately.

Past VAT Rate Changes in Ireland

Irish State Budget for 2025

Ireland extended the 9% temporary reduced VAT rate on gas and electricity, running from 1 May 2025 to 31 October 2025. This reduced rate was initially introduced on 1 May 2022 and has been extended on several occasions.

From 1 January 2025, the VAT rate for the supply and installation of a heat pump was reduced from 23% to 9%.

Other temporary VAT reductions were previously introduced to help offset inflation impacts. For instance, VAT for tourism, hospitality, and hairdressing returned to 13.5% in August 2023, ending the previous temporary 9% rate.

VAT Rate Changes in Ireland: 2024 and 2023

2024 changes:

• VAT on audiobooks and e-books was reduced from 9% to 0%.
• A 0% VAT rate now applies to the supply and installation of solar panels on school buildings, including related equipment supplied under the same contract.

2023 changes:

• VAT on newspapers and news periodicals, including digital versions, was reduced to 0% from 9%.
• Certain health products — including period products, defibrillators, non-oral hormone replacement therapy, and non-oral nicotine therapy — now carry a 0% VAT rate.
• The VAT rate for tourism and hospitality services was set permanently at 13.5%.

These reductions aim to support various sectors and essential services across the country.‍

Have a look at our VAT rates overview for Ireland here. Also, check our VAT rates in Europe overview here.