From 1 July 2026, the Republic of Ireland will reduce VAT on food and catering services from 13.5% to 9%, but hotel accommodation is excluded. This guide explains what's changing and how to update your EPoS system before the deadline.
⚠️ Important: You must update your EPoS system before 1 July 2026. Applying the wrong rate may result in penalties or unexpected tax debts.
What's changing
The VAT rate on food, catering and hairdressing services is permanently reduced from 13.5% to 9%, following the Government's Budget 2026 announcement.
Supply type | Up to 30 June 2026 | From 1 July 2026 |
Restaurant / café dining | 13.5% | 9% |
Catering services (events, canteens) | 13.5% | 9% |
Hot takeaway food | 13.5% | 9% |
Hotel / guest accommodation | 13.5% | 13.5% (no change) |
Alcohol | 23% | 23% (no change) |
Soft drinks, bottled water, sports drinks, vegetable juices | 23% | 23% (no change) |
Cold takeaway food | 0% | 0% (no change) |
Bundled packages
Where a package includes accommodation, meals, and drinks, you must apportion the charge for VAT purposes. Revenue requires this to be done on a fair and reasonable basis, typically by referencing the individual selling prices of each component.
9% applies to food (e.g. breakfast and dinner, excluding alcohol)
13.5% applies to the room
23% applies to alcohol
⚠️ Important: Ensure food, accommodation and drinks are listed as separate line items on invoices and receipts.
Identify your tax system
Before making any changes, confirm whether your site uses the Simple Tax System or Tax Group Links.
Click POS Control, then click POS Commands, then click New.
From the Job Type list, select Get PosLink Programs.
Select Global Flags.
Select the master terminal for each site.
Click Save and wait for the command to complete in POS Command Status.
Click POS Control, then click Global Flags.
Select the location, then select Flags 1.
Type tax into the filter window.
Check Use Simple Tax System:
Selected = Simple Tax System
Unselected = Tax Group Links
Do not change this flag.
Simple Tax System
Create a 9% VAT rate
Click POS Control, then select POS Control again.
Select Tax Rates and click New.
Enter description: Ireland Food VAT 9%.
Set the rate to 9.
Select a rounding method and add flags (match an existing rate if unsure).
Click Save.
Apply to eligible PLUs
Click POS Control, then click PLU List, and select a location.
From the Major Group list, select Show Account/Stock Info, then click Next.
To change all PLUs in the group:
Right-click Tax Code and click Set all to a value.
Select Ireland Food VAT 9% and click Apply.
To change specific PLUs:
Click the tax rate on the relevant PLU and select Ireland Food VAT 9%.
Click Save.
Repeat for all relevant Major Groups.
⚠️ Important: Do not apply the 9% rate to alcohol, soft drinks, or hotel accommodation PLUs. These must remain at 23% and 13.5% respectively.
Tax Group Links
⚠️ Important: Only follow this section if you are not using Simple Tax.
Create a 9% Tax Group
Click POS Control, then click POS Control again.
Click Tax Groups and select a location.
Click New.
Description: Ireland Food VAT 9% | Rate: 9.
Click Save and ensure the rate is under Tax Order 1.
Update Tax Group Links
Click POS Control, then click Tax Group Links, and select a location.
Tax Group Links display from top to bottom.
Check that all tax rules are in place.
To add a new rule:
Highlight the Food Major Group and click Add.
Select the seating area and Ireland Food VAT 9%.
If a rule already exists, modify it to Ireland Food VAT 9%.
Click Save.
🤓 Tip: When you're ready, you can send these changes to the till.
Send changes to tills
Log in to EPoS Manager.
Click POS Control and select POS Control.
Select POS Commands and click New.
Select Send PosLink Programs.
Select PLUs and click Tax Rates.
Click Select terminals.
Click Save.
Review business sheets and stock results
Ensure your business sheets are correctly configured and reflect the tax code changes you've made.
Check stock results in EPoS Manager to confirm VAT figures are calculating correctly after the update.
Source: Revenue.ie Tax and Duty Manual (updated April 2026). For general guidance only — consult your tax advisor for specific advice.