A ‘Solemn Commitment’ for the 9% VAT Rate from Government

Paul Sherwood Photographer paul@sherwood.ie 00 353 87 230 9096 Restaurants Association of Ireland, protest march to the Dail, Dublin. October 2024

The reinstatement of the 9% VAT rate has been a core priority for the Restaurants Association of Ireland ever since it was increased to 13.5%. No organisation has fought harder for its return. Since its increase, we have relentlessly continued our advocacy, pressing the case at every opportunity. The Programme for Government committed to a reduction in the VAT rate, a promise that was later echoed by the Minister for Finance and supported by both Fianna Fáil and Fine Gael.

Yesterday, at the National Economic Dialogue, we were encouraged to hear a clear commitment from Tánaiste Simon Harris, who stated:

“When you say you’re going to reduce the VAT rate in the hospitality sector, that costs a significant amount of money. We’re very serious about that pledge. It was a solemn commitment, because it’s not about a tax cut for businesses, it’s about recognising that in every town, in every village, there are small businesses creating employment that want to be able to keep going and need to be supported.”

He continued:

“There are lots of other ways in terms of how the state can reduce costs. But also the best way you help people is by making sure they have a job.”

We have fought hard for the return of the 9% VAT rate, and it appears the Government has finally listened. While we await the expected formal announcement in Budget 2026 and promised implementation on January 1^st of next year, this clarity is very welcome. It will provide a lifeline to many businesses across the country. However, more will be needed to address the rising cost of doing business and previous government induced costs.

This is a positive step forward for the food-led hospitality sector and a reminder that sustained representation delivers results. Without your support as a member of the Association, we would not be able to lobby as consistently or as effectively on your behalf. The Restaurants Association of Ireland is here to work with you and for you as part of a united voice for the Irish food-led hospitality sector.

If you would like more information on how we represent you, feel free to email Liam at . He’ll be happy to discuss any issues or concerns you may have.

Yours Sincerely