The Restaurants Association of Ireland (RAI), the representative body for restaurants, cafés, gastropubs and other food-led hospitality businesses across Ireland, has welcomed the permanent reintroduction of the 9% VAT rate for food-led hospitality, which came into effect on 1 July 2026.

As reported by the Roscommon People, the RAI described the reduced VAT rate as a vital support for indigenous businesses, employment and communities across Ireland, with the measure expected to benefit the vast majority of hospitality operators, who are small and medium-sized enterprises.

Adrian Cummins, chief executive of the Restaurants Association of Ireland, said: "This is a landmark day for Ireland's food hospitality sector. The permanent return of the 9% VAT rate is recognition by Government of the immense pressures businesses have faced in recent years. Our members have shown remarkable resilience while continuing to provide employment, serve their customers and support communities across Ireland."

Cummins added: "Hospitality businesses are much more than places to eat. They are social hubs where families and friends come together, where visitors experience Irish hospitality and where communities thrive."

The RAI said the permanent nature of the rate reduction, rather than a temporary measure, was particularly significant, as it would give business owners the confidence to plan ahead, make investment decisions, and continue creating employment across the country.

The reintroduction of the 9% rate follows a period of sustained lobbying by the RAI and other hospitality trade bodies, during which the sector faced considerable cost pressure from rising wages, energy costs, insurance premiums, and reduced consumer spending. The rate had previously been restored on a temporary basis before being allowed to lapse, leaving operators at a competitive disadvantage during one of the most challenging periods in the sector's recent history.

The permanent restoration marks a significant policy outcome for the RAI, reinforcing the association's role as a central advocate for hospitality members at a time when the sector's long-term viability and employment contribution remain under sustained pressure across all regions of Ireland.