The government’s decision to confirm that VAT9 will be served up for food businesses come next July was a “welcome Budget order” according to the Licensed Vintners Association (LVA).
The representative group for Dublin pubs has been pressing for the return of the lower VAT rate since it was scrapped in September 2023.
They also criticised the Government’s decision to ignore the cost of Special Exemption Orders (SEOs), which are needed in order to allow a pub or nightclub to open beyond standard licensing hours. A cost of €205 plus solicitor fees has been imposed for every single night a licensed premise that wishes to extend their operating times by up to two hours. For a venue opening late three nights per week, that amounts to almost €32,000 (plus solicitor fees) per year.
The LVA also expressed their disappointment that the excise rate was not reduced in the Budget and remains at “amongst the highest levels in the EU”.
Speaking in response to Budget 2026, LVA CEO Donall O’Keeffe said, “Confirmation that VAT9 will return for food serving businesses is a welcome Budget order for hospitality. While everyone wanted this measure in place from Budget Day, we are glad to see this finally and formally confirmed. We have nine more months of VAT at the higher rate and we welcome that this announcement will take the VAT 9 discussion off the table for good. This is a very important measure to boost the viability of pubs that serve food, given the extraordinary cost pressures they are experiencing.
“It was however disappointing to see no action taken to reduce the cost of SEOs. In our view, the cost associated with these exemptions is over the top. It is a bit much for the Government to be imposing these charges given the entire late night sector had been patiently expecting the Government’s licensing reforms to take effect for a few years now.
“It is also disappointing that there has once again been no action to reduce the unreasonable levels of excise duty charged on alcohol. Customers purchasing alcohol in this country are paying excise at rate that is amongst the highest levels in the EU. With Irish drinking consumption now at average European levels, this has long since passed being a measure aimed at encouraging moderation. It is the Government imposing a tax on people’s socialising. In fact it is a tax upon a tax, with VAT also being charged. The Government needs to take action if they want to maintain the competitiveness of our sector in the future,” Mr. O’Keeffe concluded.