407. Deputy Michael Collins asked the Tánaiste and Minister for Finance the rationale for the decision to reduce the VAT rate for hairdressers and barbers from 13.5% to 9% from July 2026, while excluding beauty services from the same measure; whether his Department carried out an assessment of the comparability of operating costs and business models across these closely related sectors; and if he will make a statement on the matter. [29704/26]

408. Deputy Michael Collins asked the Tánaiste and Minister for Finance if he acknowledges that maintaining a higher VAT rate for beauty services than for hairdressers and barbers may create an uneven competitive environment within the personal care sector; whether this divergence was considered during the formulation of the VAT measure; and whether he will review the decision with a view to ensuring fair and consistent treatment across comparable small businesses. [29705/26]

409. Deputy Michael Collins asked the Tánaiste and Minister for Finance the consideration that has been given to the sustained cost pressures facing small, independent beauty businesses, including rising rent, wages, insurance, utilities, training requirements, and professional product costs; whether these factors were taken into account when deciding not to extend the reduced VAT rate to the beauty sector; and if additional supports are being considered. [29706/26]

410. Deputy Michael Collins asked the Tánaiste and Minister for Finance the estimated impact of excluding beauty services from the proposed VAT reduction on employment and business viability in towns and villages, particularly in rural areas; whether he accepts that small beauty enterprises play an important role in local economies, supply chains and community wellbeing; and if he will make a statement on the matter. [29707/26]

416. Deputy Barry Heneghan asked the Tánaiste and Minister for Finance the rationale for reducing the VAT rate for hairdressing and barbering services to 9% from July 2026 while excluding beauty services; the criteria used to determine eligibility for the reduced rate; whether he will consider extending the reduced rate to beauty services given similar cost pressures; and if he will make a statement on the matter. [30184/26]

422. Deputy Michael Healy-Rae asked the Tánaiste and Minister for Finance if his Department will consider including the beauty sector in the VAT reduction measure from July 2026; and if he will make a statement on the matter. [30294/26]

423. Deputy Michael Cahill asked the Tánaiste and Minister for Finance to consider and allow for a reduction in VAT to 9% for a sector (details supplied) in line with hairdressers and barbers; and if he will make a statement on the matter. [30298/26]

425. Deputy Carol Nolan asked the Tánaiste and Minister for Finance the rationale for excluding businesses within the beauty/nail salon sector from the recent VAT reduction to 9%, when barbers and hairdressers were included; if he will consider offering supports to offset this decision to exclude them; and if he will make a statement on the matter. [30490/26]

440. Deputy Matt Carthy asked the Tánaiste and Minister for Finance in relation to the upcoming VAT reduction for services including hair dressing, whether his Department has conducted any analysis of the feasibility and cost of applying the reduction to associated services such as those provided by beauty salons, nail technicians and skin clinics; and if he will make a statement on the matter. [30853/26]

443. Deputy Danny Healy-Rae asked the Tánaiste and Minister for Finance for an update on VAT rates (details supplied); and if he will make a statement on the matter. [30970/26]

I propose to take Questions Nos. 407, 408, 409, 410, 416, 422, 423, 425, 440 and 443 together.

I am advised by Revenue that the VAT rating of goods and services is subject to the requirements of the EU VAT Directive with which Irish VAT law is obliged to comply. In general, the EU VAT Directive provides that all goods and services are liable to VAT at the standard rate, unless they are exempt from VAT or fall within the categories of goods and services listed in Annex III of the EU VAT Directive, to which Member States are permitted to apply lower VAT rates subject to certain rules.

Beauticians are not included in the categories of goods and services on which the EU Directive allows a lower rate of VAT, and therefore they would fall to be taxed by Member States at their standard rate of VAT – which in Ireland is currently 23%.  However, the Directive allows that a Member State may retain certain long-standing VAT arrangements that they had in place, subject to strict conditions including that the terms of the historic arrangement cannot be extended.

On this basis, Ireland is permitted to retain its long-standing application of its reduced VAT rate – which is currently 13.5% – to services related to the care of the human body, which includes beautician services. In accordance with the Directive this arrangement is treated as a ‘parked’ rate, which means that it cannot be reduced below 12%. If Ireland were to cease the application of the parked rate to these supplies, then under the terms of the Directive these services would have to be subject to the standard rate of VAT.

As hairdressing services are specifically included in Annex III and are not a ‘parked’ item, it is possible to apply the 9% rate to them. Therefore, in accordance with Finance Act 2025 the 9% rate will apply to hairdressing services from 1 July 2026. This measure includes hairdressing services provided by beauticians but does not extend to other beauty services.