Reduced 9% VAT rate for hairdressers effective from 1 July

The VAT rate for hairdressers is decreasing from 13.5% to 9%, effective from 1 July.

The reduction is part of a number of measures announced by the Government in Budget 2026.

The new rate also applies to cafes, restaurants and catering services and follows a campaign by a number of industry bodies, including the Irish Hairdressers Federation (IHF).

The IHF welcomed the reduced VAT rate when it was announced last year, but said that it needed to be implemented sooner than 1 July 2026.

“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 stated.

At the time, the Irish Hairdressing Council echoed the IHF’s concerns, noting that rising operational costs, staffing challenges and the continuing financial pressures on small businesses meant that immediate support was needed to help salons remain viable and protect jobs.

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.