Why Ireland’s 9% Vat rate is crucial for the survival of restaurants and cafés

Policymakers must remember that hospitality isn’t just an industry — it’s part of the Irish identity, writes Adrian Cummins, CEO of The Restaurants Association of Ireland

The average profit margin for a restaurant hovers between 3% and 5% in good times — far less in rural areas or off-season. File picture: Burak K/Pexels

At first glance, Vat (Value Added Tax) may seem like just another line on a receipt. But for thousands of small and medium food businesses across Ireland — from bustling cafés in Galway to family-run restaurants in rural Kerry — that single percentage figure represents the difference between survival and closure. 

The debate around Ireland’s hospitality Vat ate is more than a fiscal exercise; it’s a matter of economic sustainability, cultural preservation, and community resilience.