Aug
Ireland confirms reduced 9% VAT rate for restaurant services
Who this will interest: Businesses operating in the restaurant, catering and hospitality sectors in Ireland.
Key point(s): A reduced VAT rate of 9% applies on restaurant and catering services from 1 July 2026. New VAT guidance has been published on how the rate applies including its interaction with the reduced rate for accommodation.
Action points: Businesses must ensure their accounting systems and VAT codes reflect the application of the new rate as of 1 July 2026.
In detail
Revenue has updated its VAT guidance on how the reduced VAT rate of 9% applies to restaurant and catering services from 1 July 2026. Revenue has also clarified those cases where accommodation is combined with meals (e.g. bed and breakfast) and a single price is charged. Package prices must be fairly allocated between accommodation (13.5% VAT) and meals (9%, or where applicable 23% VAT) as these are considered multiple supplies instead of a single supply.
Impact on businesses
Hospitality businesses must ensure that their VAT treatment for restaurant, catering and accommodation services is reviewed and their accounting systems are updated to ensure the correct application of the reduced rate from 1 July 2026.