The 9% VAT Rate: A Promise That Must Be Delivered

The 9% VAT Rate: A Promise That Must Be Delivered

In recent days, there has been renewed media attention surrounding the promised reinstatement of the 9% VAT rate for the hospitality sector. One thing that needs clarification is that this will NOT cost €1 billion. This is completely untrue and unfounded. We have been consistently told by the Department of Finance that this will cost €545 million for food businesses. Even with accommodation included it still falls far short of €1 billion.

Let us be absolutely clear: this is not up for discussion. The Government cannot backtrack on what has most recently been called a solemn commitment by Tánaiste Simon Harris.

 

Here’s what leading Ministers have said:

Minister for Finance, Paschal Donohoe (Tuesday):
“It has always been my intention to deliver the 9%.”

Minister for Public Expenditure Jack Chambers (last week):
“We have been clear around its implementation, and the Programme for Government has given us a clear direction.”

Minister for Enterprise Peter Burke (Thursday):
“The Government continues to support its implementation on January 1st.”

The Minister for Enterprise, Tourism and Employment has shown clear understanding of how difficult things are for businesses in the current climate and he deserves huge credit for his continued support of our sector.

However, now is the time for his colleagues in government to follow through on their commitment.

We are calling on you to act:
📞 Contact your local Minister, TD, or Senator.
📢 Share your story.
📧 Show them how challenging the current environment is.

Make it clear:
You deserve the 9% VAT rate.
Backtracking cannot be an option.
We know that. You know that. And it’s time to ensure they know that.

The 9% VAT rate must be reinstated on January 1st, 2026.
Nothing else is acceptable.

For further information, please contact or call (01) 677 9901.

Ready to become a member?

Find out more about the benefits of memberships
with the Association here.