From July 1, 2026, the Irish VAT rate for qualifying restaurant and catering services is reducing from 13.5% to 9%. Complete your Lightspeed Restaurant updates by then to make sure qualifying products are taxed correctly from the effective date.

To prepare for this change, start by identifying which products and categories qualify for the new 9% rate. Then configure VAT rate updates by reviewing alcohol categories, updating qualifying categories, checking products with manually configured VAT rates, and reviewing existing combos.

In most cases, you should:

• Update qualifying dine-in food and drink categories from 13.5% to 9%.
• Update hot takeaway food categories from 13.5% to 9%.
• Leave cold takeaway VAT rates at 0% (zero-rate).
• Leave alcohol, bottled waters, soft drinks, sports drinks, and vegetable juices at 23% (standard rate).
• Review products with manually configured VAT rates because they don’t inherit changes from their category.
• Review existing combos because they keep the VAT rates that were in effect when you created them.

This VAT change is not currently scheduled to end. After you update your setup, you don’t need to make any additional changes unless future tax legislation introduces further VAT rate changes.

For more information, refer to Revenue’s guidance on VAT for restaurant, catering, and canteen services and its Tax and Duty Manual on VAT Treatment of Restaurant and Catering Services.

Identifying qualifying products

Revenue rules determine the VAT treatment of individual products. Use this section to review common product examples before configuring your VAT rate updates. This information doesn’t provide tax advice. 

If you’re unsure how to classify a product, refer to Revenue’s guidance on VAT for restaurant, catering, and canteen services and its Tax and Duty Manual on VAT Treatment of Restaurant and Catering Services, or consult your accountant or tax advisor before making changes.

Products typically updated to 9%

Dine-in, restaurant, or catering:

• Hot prepared food (burgers, chips, hot meals)
• Cold prepared food (sandwiches, salads, bakery items)
• Chocolates, confectionery, crisps, ice cream, chocolate-covered biscuits
• Cakes and biscuits (other than chocolate-covered biscuits)
• Hot drinks (tea, coffee)
• Fruit juices (when supplied as part of a restaurant or catering service)

Hot takeaway:

• Hot takeaway food (including food heated, retained heated, or supplied while still warm)
• Hot sandwiches (including hot/toasted bread, bagels, baguettes, paninis, and wraps, and cold versions containing hot fillings)
• Cold food supplied with hot food for an inclusive price (for example, coleslaw with hot chicken)

Products that typically require no change

• Alcoholic beverages
• Bottled waters
• Soft drinks
• Sports drinks
• Vegetable juices
• Cold takeaway food

Alcoholic beverages, bottled waters, soft drinks, sports drinks, and vegetable juices usually remain at 23% (standard rate). Cold takeaway food usually remains at 0% (zero-rated).

Overview of qualifying products

Below is an overview of VAT rates for common product types from July 1, 2026, based on Revenue’s Summary table: Rates applicable from 1 July 2026 in its Tax and Duty Manual on VAT Treatment of Restaurant and Catering Services. This information is for reference only. Check Revenue’s guidance for the most up-to-date information.

Configuring VAT rates

1. Review alcohol categories

Alcoholic beverages remain subject to the standard VAT rate of 23%.

Before updating category VAT rates, review your category structure and make sure alcohol products remain configured correctly. If food and alcohol products are in the same category, updating the category tax rate may apply the wrong VAT rate to alcohol products.

To avoid incorrect VAT configuration, consider one of the following options:

1. Move alcohol products into a dedicated category.
2. Use product-level VAT overrides.

We recommend using separate categories wherever possible.

2. Update categories

For each category containing qualifying food or drink products, update the tax rate.

1. In Restaurant Manager, go to Products > Categories.
2. Open the category you want to update.
3. Change the Tax Rate from 13.5% to 9%.
4. Change the Takeaway Tax Rate:
   1. Hot takeaway food: Change from 13.5% to 9%.
   2. Cold takeaway food: Leave unchanged.
5. Leave the Delivery Tax Rate unchanged.
6. Click OK.
7. Repeat these steps for all qualifying categories.

If a product has a manual tax rate that is different from the category tax rate, it won’t inherit the category tax rate. To identify these products, export your product as a CSV file and update their VAT rates separately if needed. If you change a product’s tax rate to match the category tax rate, the inheritance relationship is restored. Future VAT changes for the category will then apply to the product.

3. Review existing combos

When you create a combo, it stores the VAT rate of its component products at the time of creation. Updating a product’s VAT rate or changing the VAT rate of its category doesn’t update existing combos. Existing combos continue using the VAT rates that were in effect when you created them.

To apply the new 9% VAT rate to a combo:

1. Update the VAT rate of the relevant products or categories.
2. Create a new combo using the updated products.
3. Replace any existing combos by removing or hiding them from the POS.

Important legal notes

Please note that Lightspeed does not give tax advice. Any photos, images, graphics, written content, audio, video, files, materials, information, or any other data contained in this help document (the “Material”) are intended to be used solely for educational purposes, and Lightspeed makes no representations or warranties of any kind, express or implied, regarding the accuracy, completeness, or suitability of the Material for any particular purpose. Lightspeed shall not be liable for any errors or omissions in the Material or for any actions taken by you which are based on or informed by the Material. Always consult your tax professional for your specific situation. 

Additional information is available in the Irish State Budget 2026 announcement.