Irish Revenue has updated its Tax and Duty Manual to reflect the 9% VAT rate on certain hot food and drink supplies from 1 July 2026, clarifying the applicable VAT treatment of groceries, bakery products, packaged beverages, and takeaway meal deals.
The Irish Revenue has issued Revenue eBrief No. 143/26 on 7 October 2026, updating its Tax and Duty Manual on the VAT treatment of food and drink supplied by wholesalers and retailers. The update reflects the application of the second reduced VAT rate of 9% to certain hot or heated food supplies from 1 July 2026.
This official tax manual outlines the Value-Added Tax (VAT) rates applicable to the wholesale and retail supply of various food and drink products for human consumption. It establishes clear criteria for defining ordinary food while categorising items into distinct tax tiers, including zero rate, reduced rate, second reduced rate, and standard rate.
Second reduced VAT rate (9%)
Effective 1 July 2026, the 9% rate applies to hot or heated food and drinks, including takeaway meals, hot tea, coffee, and toasted sandwiches. When hot and cold food items are sold together for a single inclusive price, the entire bundle is subject to the 9% rate.
Reduced VAT rate (13.5%)
The 13.5% rate applies to certain bakery products, including cakes, crackers, wafers, doughnuts, croissants, brioche, and speciality breads. Non-chocolate biscuits qualify if their moisture content does not exceed 12%. Boxed biscuit assortments qualify only if chocolate-covered biscuits account for no more than 15% of the total net weight; otherwise, the standard 23% rate applies to the entire box.
Zero VAT rate (0%)
Basic groceries, including standard bread, dairy products, eggs, meat, pasta, fruit, vegetables, cereals, and infant-labelled baby food, remain zero-rated. Milk and plant-based milk alternatives, dry tea and coffee products, cold pre-packed sandwiches, salads, wraps, and chilled or frozen meals also qualify for zero-rating, subject to the applicable rules.
Standard VAT rate (23%)
The standard rate applies to confectionery, chocolate, ice cream, chocolate-covered biscuits and wafers, savoury snacks, and packaged beverages. These include bottled water, soft drinks, fruit and vegetable juices, iced tea, iced coffee, sports drinks, and alcoholic beverages.
Takeaways and combination meal deals
Food sold from counters or mobile snack bars without waiter service or table settings is generally treated as a supply of goods rather than restaurant catering. For discounted meal deals containing items subject to different VAT rates, the discount must be apportioned proportionally among the items, with each item retaining its applicable VAT rate.
