Retain and Extend 9% VAT Rate for the Hair and Beauty Sector in Ireland

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The Hair and Beauty sector in Ireland in one that is visible in every city, town and village across Ireland. Phorest  Salon Software has reported that the salon and spa sector in Ireland is worth €540 million to the Irish economy.  Employing thousands of people nationally, central statics CSO figures for 2016 place the numbers in employment in the Irish Hair and Beauty and related sectors (NACE code 9602) at 23, 679 and of this figure 21, 058 are females.

Since 2011 there has been a 16.8% rise in the numbers employed in the sector. The hairdressing sector gained a reduction to a 9% Vat Rate on the 1st of July  2011. There is a direct correlation between the effect of the 9% vat rate and the increase in employment figures.  We urge the Government to RETAIN the 9% VAT rate that is afforded to the hairdressing and barbering sector and STRONGLY URGE the government to EXTEND this 9% VAT rate to the Beauty sector which is also included in the NACE code 9602.

An adjustment for the Beauty sector in the form of a VAT rate REDUCTION to 9% will afford salon owners to create thousands of extra jobs. 

In a sector that is already facing many challenges interms of raising costs, high competition, war on talent, high mobility of employees and low profit margins, we URGE government and policy makers to retain the 9% VAT rate for the hair sector and reduced the VAT rate to 9% for the Beauty sector in order to sustain jobs. Any adjustment upwards on the VAT rate would have a grave effect on the industry as a whole and would lead to job losses. 

We urge all hairdresser, barbers, beauticians, therapists, makeup artists and all those who are employed within the this sector to join with us to lobby the Government to hear our COLLECTIVE voice on the VAT issue that effects us all.