Conor McGuinness (Waterford, Sinn Fein)
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360. To ask the Minister for Finance if beauty service providers will be included in the reduced 9% Vat rate announced in Budget 2026, as hairdressers are. [55127/25]

Paschal Donohoe (Dublin Central, Fine Gael)
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Per Budget 2026, the second reduced VAT rate of 9% will apply to services provided by hairdressers from 1 July 2026. This measure will extend to all hairdressing services including those provided by Beauty Salons.

The Deputy should be aware that all VAT legislation must comply with all provisions of the EU VAT Directive which holds that all goods and services are liable at the standard rate which must be at least 15%. Hairdressing services are included in a schedule of goods and services under Annex III of the Directive where a reduced rate of VAT may be applied.

Beauty Salons which provide services consisting of the care of the human body, including beauticians, are not included in this list. However, Ireland currently avails of a historical derogation within the Directive that sees the services provided by beauty salons charged at the reduced VAT rate of 13.5%. A condition of this historical derogation is that a rate no lower than 12% may be set and the rate "parked" at Ireland's reduced VAT rate of 13.5%.

Beauty Salons will charge 9% VAT on their hairdressing services.