Irish Tax Update 2026
Effective Date: 1 July 2026
Overview:
ℹ️ The change is applicable for both new and existing merchants.
As part of the Irish State Budget for 2026, the Irish government (Revenue) is reducing the VAT rate for restaurant and catering services from 13.5% to 9%:
- Included: Meals and non-alcoholic catering services consumed on-premises (Dine-in).
- Excluded: Takeaway food is classified as a supply of goods and maintains its current independent tax treatments. Guest/Holiday Accommodation remains at 13.5%. Alcoholic beverages remain at the standard rate of 23%.
Today (Before July 1st 2026)
As of July 1st 2026
Required actions:
Merchants do not need to manually change profiles, but they must:
- Confirm all items/accounting groups are mapped to the correct tax profiles.
- Run a Reload Device Configuration on all POS devices before opening on July 1st.
What is the VAT change for Ireland in July 2026?
The Irish government is reducing the VAT rate for restaurant and catering services (food and non-alcoholic beverages consumed on-premises) from 13.5% to 9%.
When does this new VAT rate come into effect?
The 9% rate is effective starting 1 July 2026.
Does this new rate apply to takeaway orders?
No. Revenue treats takeaway food as a supply of goods, not a restaurant service. Takeaway orders are not impacted by this budget change and will maintain their current VAT configurations (varying between 13.5%, 23%, and 0% depending on the specific item).
What do I need to do in my K-Series Back Office to apply this change?
You do not need to alter any Accounting Groups or Tax Profiles.
Lightspeed will automatically update your existing tax profiles (Reduced, Reduced rate, and Reduced exempt) to apply the 9% rate for Dine-in orders.
The only action required on your end is to tap Reload Device Configuration on your POS devices before taking orders on July 1st, 2026.
I have integrations with delivery platforms (e.g., Deliverect, UberEats). Will they be affected?
No. Because delivery orders pull directly from takeaway-based order profiles, they will automatically continue using the correct takeaway VAT rates (13.5%, 23%, or 0%). The 9% reduction strictly targets dine-in order profiles.
