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.

In a social media post this week, the IHF said committee member Roy Kennedy attended a Government media event marking the reintroduction of the 9% VAT rate for the sector.

“This is a measure the IHF has been campaigning for over the past three years, and a welcome, much-needed step that recognises the challenges facing our industry,” it said. “We hope it marks the beginning of continued Government support for the hairdressing sector.

“It is important to acknowledge that the return of the 9% VAT rate is not a financial windfall for salons. After years of rising costs including wages, energy, insurance and business overheads, many salons have been operating on extremely tight margins, with some trading at a loss.

“For many salons, this reduction is not about increasing profitability, it is about improving viability and helping businesses remain sustainable, allowing them to continue serving their communities, investing in apprentices and protecting jobs.

"We would like to thank everyone who supported this campaign and helped highlight the challenges facing our industry. Together, we have taken an important step in the right direction. 

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.