Ireland Guest Accommodation VAT: Mixing 13.5% Rooms with 9% Catering

Ireland’s second reduced VAT rate of 9% applies to catering and restaurant supplies, hot takeaway food, hot tea and coffee, and hairdressing services with effect from 1 July 2026. Revenue’s VAT rates pages confirm that from 1 September 2023 to 30 June 2026 those supplies were generally at the (higher) reduced rate, before the 9% rate returned.

For hotels, guesthouses, B&Bs, and similar establishments, the practical issue is mixed packages. Guest or holiday accommodation remains at the reduced rate of VAT, while meals served as restaurant or catering services moved to the second reduced rate from 1 July 2026. Alcohol, bottled waters, soft drinks, sports drinks, and vegetable juices (excluding fruit juice) stay at the standard rate even when served with a meal.

Revenue eBrief No. 086/26 (28 April 2026) updated the VAT treatment manuals for guest and holiday accommodation and for restaurant and catering services to reflect Finance Act 2025. The guest and holiday accommodation manual now covers multiple supplies where accommodation and catering sit in one package after 1 July 2026.

Where an advance payment is received for an accommodation-and-food package that straddles the rate change, VAT follows the rate in force when the invoice for that payment is issued (or ought to have been issued), whichever is earlier. Revenue’s worked example: a June 2026 advance for a July stay can be entirely at the reduced rate on that advance invoice, while the July final payment must split reduced-rate accommodation from second-reduced-rate food.

Map every package sold since 1 July 2026 into accommodation, catering/restaurant food, and standard-rate drinks. Update POS and invoicing so room nights and meals are not collapsed into a single reduced-rate line if they are multiple supplies.

Reconcile July VAT 3 (due 19 August 2026 on Revenue’s calendar for monthly filers) against the new split. Spot-check B&B and dinner-inclusive packages where staff historically used one composite rate.

Confirm unusual supplies with Revenue before filing — package holidays, long-term lets, and conference packages can have different analyses. Hairdressing salons on the same premises should also confirm they are charging 9% on hairdressing services from 1 July 2026.

Clean sales categories and receipt matching make multi-rate VAT returns easier to review. FinnAccountings helps Ireland and UK hospitality and service businesses prepare VAT and bookkeeping packs with Chartered Accountant insight before you or your Chartered Accountant (Ireland) or ICAEW/ACCA adviser reviews and files. Start a free trial to get July packs review-ready — we prepare drafts; we do not submit VAT 3 returns to Revenue on your behalf.

Use the free VAT calculator for Ireland and the UK rate checks, VAT Services Ireland for ROS workflows, and our Ireland August 2026 SME tax deadlines checklist for the 19 August VAT 3 date. Hospitality traders should also revisit our July 2026 hospitality VAT update for the wider 9% policy context.