A new 9% VAT rate coming into effect tomorrow will provide a significant boost for cafés and restaurants operating in leisure facilities and tourist attractions, according to Fine Gael Senator Linda Nelson Murray.

The reduced VAT rate, which has been made permanent for the hospitality sector, also applies to smaller independently run cafés, coffee shops and restaurants based in leisure and visitor destinations across the country.

With the summer holiday season now underway following the end of the school term, Senator Nelson Murray said the timing of the change aligns with peak trading conditions for a range of attractions including soft play centres, swimming pools, sports centres, pet farms, museums, playgrounds and other visitor sites.

Senator Linda Nelson Murray said the permanent reduction in VAT for hospitality also applies to all of the smaller, independently run cafés, coffee shops and restaurants that operate in many leisure and tourist centres around the country. "Many of these businesses include smaller coffee shops and restaurants, which customers and visitors have now come to expect when they are spending time in any amenity, particularly with children.

"But they can be costly to run, both in terms of staffing requirements and ongoing training required, alongside rising energy and food costs. This reduced VAT rate enables them to continue to provide a viable service that enhances their offering to the customer.

"Jobs in leisure and hospitality are vital for so many communities across Ireland, and we need to do all we can to protect them and our economy.

"In 2025, there were 186,000 people employed in Accommodation and Food Services, with 75% of businesses employing less than 10 staff.

"That's why this reduction in VAT for the hospitality sector will be a huge help to so many.

"This change will be felt by our many coffee shops and docks in visitor centres – many of which are family-run. They have worked hard through challenging times. This cut gives them space to reinvest, innovate, and expand, so their businesses can thrive throughout the year, not just when schools are out for summer."