Business

The 9% VAT rate: restaurants, energy and apartments

Last updated 16 October 2026

Restaurants, hot food and hairdressing pay 9% VAT from 1 July 2026; electricity, gas and new apartments do until 2030. Hotels stay at 13.5%.

Ireland's second reduced rate of VAT is 9%. It covers a short list of goods and services, several of them only for set periods. Revenue's second reduced rate page has the full list.

What is at 9%, and until when

Supply	At 9%
Restaurant and catering food (not alcohol, soft drinks or bottled water), hot take-away food, hot tea and coffee, hairdressing	From 1 July 2026; 13.5% from September 2023 until then
Electricity, and gas for heating or lighting	1 May 2022 to 31 December 2030
Building and selling qualifying apartments	26 November 2025 to 31 December 2030 (and 8 October to 25 November 2025)
Periodicals and certain e-periodicals, and sports facilities provided by businesses that aren't non-profit	Ongoing

Hotels and holiday lets stay at 13.5%

Hotel lettings, guesthouses, caravan parks and campsites were at 9% from November 2020 to August 2023, then moved to 13.5%. They were not part of the July 2026 change: accommodation is still at 13.5%, as are cinema, theatre and museum admissions.

What the rate means in euro

VAT included in some typical prices, at 9% and at 13.5%:

Price including VAT	VAT at 9%	VAT at 13.5%
A €100 restaurant bill	€8.26	€11.89
A €250 two-month electricity bill	€20.64	€29.74
A €450,000 new apartment	€37,155.96	€53,524.23

Whether customers see lower prices depends on whether businesses pass the cut on. The apartment price is an illustration, not a typical price.

Budget 2027

Budget 2027 adds non-oral respiratory vaccines for livestock to the 9% list, once Finance (No. 2) Bill 2026 is enacted. It didn't change the dates for energy or apartments.

For a business, the rate that matters is the one in force when the supply is made. Meals served on or after 1 July 2026 are charged at 9%; earlier ones at 13.5%. See the VAT guide.

To work out the VAT in any price, use the VAT calculator.

Work it out

VAT calculator and VAT 3 return →

Sources

Revenue: Second reduced rate of VAT (9% on catering, hot take-away food and hairdressing from 1 July 2026) (checked 25/10/2026)
Revenue: Second reduced rate of VAT: qualifying apartments at 9% from 8 October 2025 (Budget 2026) (checked 25/10/2026)
Revenue: Reduced rate of VAT (13.5%) (checked 25/10/2026)
Revenue: Historical VAT rates (23%, 13.5%, 9%, 4.8%) (checked 25/10/2026)

General information, not tax advice. HeyPenny is not a tax agent.