The Government has announced Budget 2026, which includes a return to the 9% VAT rate for hairdressing services.
The 9% VAT rate had originally been in place in 2020 due to the Covid-19 pandemic, but increased to 13.5% in September 2023. It remained at that rate in Budget 2025, despite extensive campaigning from industry bodies to have it reduced. The 9% rate announced in Budget 2026 will not take effect until 1 July 2026.
The Irish Hairdressers Federation (IHF) welcomed the reduction, but stressed that it needs to be implemented sooner than next year.
“While the IHF welcomes this recognition of our sector and appreciates the decision, the measure will not take effect until 1 July next year, and for many salons, this delay is simply too late,” it said.
“We have already written to Ministers Paschal Donohoe and Jack Chambers to call for urgent implementation now, so that businesses can survive the months ahead.”
The Irish Hairdressing Council echoed the IHF’s concerns. “This announcement is a positive acknowledgement of the important contribution our industry makes to the Irish economy and local communities,” it said.
“While the reduction is very much appreciated, rising operational costs, staffing challenges and the continuing financial pressures on small businesses mean that immediate support is needed to help salons remain viable and protect jobs.”
