Irish confederation calls for VAT to be reduced in beauty sector

The Hair and Beauty Industry Confederation Ireland (HABIC) has launched the WAX the VAT campaign, to lobby the Irish government to reduce VAT in the Irish beauty sector from 13.5% to 9%.

It has undertaken the industry’s first economic report which supports its efforts, with the next step being to apply pressure on TD’s and in turn, the government. A Teachta Dála, abbreviated to TD, is a member of Dáil Éireann, the lower house of the the Oireachtas – the Irish Parliament.

Following the increase in the VAT rate for hairdressing services from 9% to 13.5% in 2019 (a VAT increase of 4.5%), a rise in the National Minimum Wage and the removal of training rates, the average price of hairdressing services increased by 3% that year.

The report states that the VAT rate for hair and beauty should be cut to 5% until the end of 2021, and then revert on a permanent basis to the 9% rate that prevailed previously.

The report was prepared using a few different approaches, including interviews with many stakeholders in the sector; desk-based research, reference to research in the UK on the beauty industry, and official statistical agencies.

How can you get involved? You can contact your local TD’s, explaining the importance of a VAT Rate Reduction to the beauty industry, and to your working life. HABIC has scripted a letter for you to post / email or deliver to your local TD’s office.

Click here for the HABIC website.