The Finance Act 2025 provides for the reintroduction of the 9% VAT rate from 1 July 2026. Revenue has now issued guidance on the change.
The reduced rate will apply to hospitality and tourism-related services including accommodation, restaurants and cafés, tourism attractions, cultural admissions, events, hairdressing, and qualifying printed newspapers.
There is no change to the 13.5% VAT rate for construction services, building materials, heating fuels, cleaning services, veterinary services, and most professional and property-related services. The 23% and 0% VAT rates also remain unchanged.
Businesses should prepare by updating POS and invoicing systems, reviewing pricing and promotional materials, checking the VAT treatment of advance bookings and deposits, and ensuring the correct treatment of mixed-rate supplies.