As part of the Irish State Budget for 2026, the Irish government is reducing the VAT rate for restaurant and catering services from 13.5% to 9%. This change applies from July 1, 2026.
The Irish Revenue website provides an overview of VAT on restaurant, catering, and canteen services, along with more detailed information in its Tax and Duty Manual on the VAT Treatment of Restaurant and Catering Services.
What is Lightspeed updating
Lightspeed is updating existing tax profiles for Ireland. This means you don’t need to create new tax profiles.
On July 1, 2026, eligible tax profiles will be updated to apply the new 9% VAT rate to items mapped to them in your tax settings.
Ineligible tax profiles will remain the same. Items mapped to these tax profiles will continue to use the current VAT rates.
Lightspeed is also updating tax profile names to align more clearly with the Irish Revenue’s naming conventions.
Before July 1, 2026
| Tax profile | Dine-in VAT | Take-away VAT |
|---|---|---|
| Standard (formerly "fullrate") | 23% | 23% |
| Second Reduced - Standard (formerly "reduced") | 13.5% | 23% |
| Second Reduced (formerly "reduced_rate") | 13.5% | 13.5% |
| Second Reduced - Zero (formerly "reduced_exempt") | 13.5% | 0% |
| Second Reduced - Reduced (new) | 9% | 13.5% |
After July 1, 2026
| Tax profile | Dine-in VAT | Take-away VAT |
|---|---|---|
| Standard (formerly "fullrate") | 23% | 23% |
| Second Reduced - Standard (formerly "reduced") | 9% | 23% |
| Second Reduced (formerly "reduced_rate") | 9% | 9% |
| Second Reduced - Zero (formerly "reduced_exempt") | 9% | 0% |
| Second Reduced - Reduced (new) | 9% | 13.5% |
What you need to do
You don’t need to create or update tax profiles manually. All you need to do is:
- Before July 1, 2026, review your tax settings to make sure items are mapped to the correct tax profiles and accounting groups.
- Before opening on July 1, 2026, reload your POS devices to apply the updated tax profiles.
For tax guidance on which VAT rate applies to specific items, refer to the Irish Revenue’s Tax and Duty Manual on VAT Treatment of Restaurant and Catering Services or consult your tax advisor.
VAT updates for Ireland FAQ
- The Irish government is reducing the VAT rate for eligible restaurant and catering services from 13.5% to 9%.
- The 9% rate takes effect on July 1, 2026.
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Takeaway food and drink are generally treated as a supply of goods rather than a restaurant service. Different VAT rates may apply depending on the type of item (hot food, cold food, hot drinks, cold drinks, alcohol, and more).
For tax guidance on which VAT rate applies to specific items, refer to the Irish Revenue’s Tax and Duty Manual on VAT Treatment of Restaurant and Catering Services or consult your tax advisor.
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You don’t need to create new tax profiles or manually update existing tax profiles. On July 1, 2026, Lightspeed will update existing tax profiles so you can apply the 9% VAT rate to eligible items. All you need to do is:
- Before July 1, 2026, review your tax settings to make sure items are mapped to the correct tax profiles and accounting groups.
- Before opening on July 1, 2026, reload your POS devices to apply the updated tax profiles.
For tax guidance on which VAT rate applies to specific items, refer to the Irish Revenue’s Tax and Duty Manual on VAT Treatment of Restaurant and Catering Services or consult your tax advisor.
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Delivery orders use takeaway-based order profiles. So, if you have reviewed your tax settings to ensure items are mapped to the correct tax profiles and accounting groups for takeaway orders, your delivery integrations will use those settings.
Takeaway food and drink are generally treated as a supply of goods rather than a restaurant service. Different VAT rates may apply depending on the type of item (hot food, cold food, hot drinks, cold drinks, alcohol, and more).
For tax guidance on which VAT rate applies to specific items, refer to the Irish Revenue’s Tax and Duty Manual on VAT Treatment of Restaurant and Catering Services or consult your tax advisor.