From 1 July 2026, the VAT rate for hospitality food services in Ireland reduces from 13.5% to 9%. Use this guide to configure Guestline Property Management System (PMS) correctly before the change takes effect.
For full details on the Irish Government policy, we recommend you read the Revenue Ireland guidance to ensure this policy is applied correctly for your specific property and offerings.
⚠️ Important: This change applies only to qualifying food items. Alcohol (23%), soft drinks and bottled water (23%), and hotel accommodation (13.5%) are not affected. You will need to manage multiple VAT rates within your system from 1 July 2026.
Apply the 9% VAT rate - from 1 July 2026
Follow the steps below to configure Guestline PMS for the VAT change.
Here is a quick overview of the actions to be completed:
When: | Steps to complete: |
In advance / Immediately after the end of day has run to close 30.06.2026. | Step 1: Locate or create a 9% tax rule |
In advance / Immediately after the end of day has run to close 30.06.2026. | Step 2: Create new analysis code(s) |
Immediately after the end of day has run to close 30.06.2026. | Step 3: Print financial reports |
Immediately after the end of day has run to close 30.06.2026. | Step 4: Update products |
Immediately after the end of day has run to close 30.06.2026. | Step 5: Reservation Re-save |
Step 1: Create a new tax rule
Before creating a new tax rule, check whether a 9% tax rule already exists in your system. You can check this by navigating to System, Configuration, then select Tax Rules. Reusing an existing rule helps maintain consistency and prevents duplication.
If you do not have a 9% tax rate, use our support guide to create a tax rule.
Step 2: Create new analysis code(s)
Use our support article to create a new analysis code within the system, linked to your 9% VAT tax rule.
You can create as many analysis codes as required to suit your reporting needs.
🤓 Tip: Keep a record of all products and their original analysis codes before making changes, so you have a clear audit trail.
Step 3: Print the financial reports
Print your End of Week and End of Month reports before the tax change takes effect, to retain an accurate record of pre-change figures.
Click Accounting.
Click Current Periods.
Find the End of Week and End of Month reports.
Click View for both reports.
Click Print or save to your desktop.
⚠️ Important: Do not close any periods.
Step 4: Update products
To link the new analysis code to your qualifying food products, follow the steps below. Do not update alcohol, soft drinks, bottled water, or accommodation products.
Click Menu, then click Products under Rates.
Click to select a product.
Select the new 9% analysis code from the drop-down menu.
Click Save.
Repeat steps 2 to 4 for all qualifying food products.
Step 5: Review products (if required)
Review all of your products to check whether you need to create any new ones. For example, if you have a package that bundles food and drinks, you may want to split these into separate products so the correct VAT rate is applied to each element.
Use our support guide to create a product, and link it to the correct analysis code.
Step 6: Reservation Re-save
On the day of the change, resident bookings and reservations arriving that day will post at the correct tax breakdown automatically, as long as you have updated the relevant analysis codes.
Any future bookings must be re-saved for the background tax calculation to update and for forecasting reports to reflect the new breakdown.
Use the Reservation Re-save feature to action this. After the re-save, carry out a random rate check to confirm qualifying food items are showing at the correct rates.
⚠️ Warning: Reservation Re-save cannot be undone — changes are permanent.
Financial reports
A change in tax during the reporting period affects financial reports. Use posting or financial audit reports to view tax values before and after the change. To view an analysis code report, follow the steps below.
Click Accounting, then click Period End, then select Period End Archive.
Use the filters to find the required months.
Click View next to the End of Month report.
Review the tax rate analysis code.
Financial Export and OmniBoost
Financial Export
If you use Financial Export reports, use our support guide to Expose and configure new Pay Types, Analysis Codes or Tax Rules once configuration has been completed for 1 July 2026.
OmniBoost
If you use OmniBoost, contact their support team or visit their Help Centre to gain assistance with updating settings for this legislation.
Direct Booking Manager and GuestStay upsells
Review any packages you offer for online sale to ensure qualifying food items are linked to the correct 9% analysis code from 1 July 2026.
If you have packages that bundle food with alcohol or accommodation, consider splitting these or creating new product configurations to ensure each element attracts the correct VAT rate. Use product rules to combine items into a package for online sale — see our article on using product rules to offer packages online in DBM and GuestStay for full steps.
EPOS and till systems
You will also need to update your EPOS systems — reach out to your EPOS and tills providers for further details.
Here are some useful links:
EPOS product | Article link |
Guestline EPoS | |
Newbridge EPOS |
Inform your team
Keep your team informed ahead of the VAT change to reduce errors at the point of sale.
Inform your finance and sales teams about the rule changes made within each system.
Provide quick reference guides for the new multi-rate VAT structure, so staff know which products attract 9%, 13.5%, and 23%.
Remind staff that alcohol, soft drinks, bottled water, and accommodation are not subject to the reduced rate.