Minister confirms VAT relief for Offaly nail and beauty salons prohibited by EU rules
Minister confirms VAT relief for Offaly nail and beauty salons prohibited by EU rules
HE Government’s apparent inability to include the beauty and nail salon sector from the reduced 9% VAT rate that has already been extended to hairdressing services has been criticised by Independent TD for Offaly Carol Nolan.
She described the move as “deeply unfair and damaging to thousands of small, often women-led businesses.”
Deputy Nolan had submitted a parliamentary question to the Tánaiste and Minister for Finance, Simon Harris on the matter:
“Over recent weeks I have been contacted by several owners and operators in the beauty and nail salon sector in Offaly who are overwhelmed by the ongoing VAT burden they face,” said Deputy Nolan.
“Many are struggling to keep their businesses viable in the current economic climate, with rising costs and reduced footfall already placing immense pressure on micro-enterprises. It is simply not acceptable that hairdressing services will benefit from a 9% VAT rate from 1 July 2026 while other services remain at 13.5%.”
In her parliamentary question, Deputy Nolan asked the Minister for the rationale behind the exclusion and whether compensatory supports would be considered for the affected sector.
The Minister’s reply confirmed however that while hairdressing services are specifically listed in Annex III of the EU VAT Directive (allowing the reduced rate), beautician services fall under a long-standing “parked” arrangement that cannot be reduced below 12%:
“This distinction may satisfy the technical requirements of the EU Directive, but it makes no sense on the ground. A beautician providing a hairdressing service to a client will benefit from the lower rate, yet the same client receiving other beauty treatment will not.”
“The result is an uneven playing field that disadvantages one part of the personal care sector over another. I am calling on the Minister for Finance to immediately examine practical supports for beauty and nail salons to offset this decision.”
“Whether through targeted relief, a temporary cost-of-doing-business grant, or engagement with the European Commission to explore greater flexibility, the Government must demonstrate that it stands with small businesses and the people who have poured their hearts into them, rather than hiding behind EU rules.” Deputy Nolan concluded.