Irish Hotels Federation Welcomes VAT Reduction For Food Services

The Irish Hotels Federation (IHF) has welcomed the announcement by the government of a reduction in VAT for food services, as part of Budget 2026.

“The lower 9% VAT rate is a crucial intervention for struggling foodservice businesses the length and breadth of the country at a time of enormous challenges and unsustainable increases in operating costs,” said Michael Magner, IHF president.

“This measure goes a long way toward putting Irish tourism on a more stable footing, aligning Ireland’s VAT rate for hospitality food services with the majority of our European competitors.”

Founded in 1937, the Irish Hotels Federation (IHF) is the national organisation of the hotel and guesthouse sector in Ireland. It represents over 900 hotels and guesthouses nationwide, employing over 65,000 people.

Magner also welcomed the additional allocations in Budget 2026 for Fáilte Ireland and Tourism Ireland.

“This increased funding for both state agencies reflects the vital role they play in developing and expanding our tourism product and market reach in what is an exceptionally competitive global environment,” said Magner.

“It will ensure that we are well placed to build on the great work done to date promoting Ireland as an attractive tourist destination.”