‘Treat beauty therapy sector the same as those in hospitality’ on VAT rate say Sligo councillors

By Philip Rooney, The Sligo Champion

Sligo County Council’s September meeting heard calls for VAT rates for beauty and wellbeing studios to be reduced to 9%, in keeping with the rate applicable to the hospitality trade and hairdressers.

Cllr Donal Gilroy’s motion before the meeting requested the council to write to the Minister for Tourism and the Minister for Public Expenditure to ask for the VAT rate charged by Beauty and Wellbeing studios be aligned with the 9% rate charged to hair salons.

General beauty treatments, which include facials, nail care, waxing, and general beautician services remain at the 13.5% VAT rate.

A campaign is underway seeking to have the VAT rate applicable to beauty salons reduced with the argument being that a reduction will help ensure businesses remain trading, create greater job security and continue supporting local apprenticeships.

Speaking to his motion, Cllr Gilroy noted that once a self-employed person earns over €38,000, they must register for VAT.”

Cllr Gilroy argued that somebody with a turnover of €200,000 will lose half of that money on running costs, and after they pay their staff, they may not be left with much for themselves.

Cllr Gilroy said VAT reductions were sought for the hospitality industry and that the hairdressing sector was included.

Cllr Gilroy acknowledged that he didn’t know too much about the sector but that he had been contacted by a constituent who “spoke passionately.”

The motion was supported by Cllr Seamus Kilgannon who remarked, “If it is 9% for other businesses, and we are all getting correspondence about how difficult it is, then I fully support the motion.”

Support for the motion also came from Cllr Gino O’Boyle who remarked that he too had received submissions in relation to the matter discussed.

Cllr Thomas Walsh also spoke out against the imbalance saying, “Beauticians operate fully outside the hospitality rule. It is very unfair, it is wrong.”

Cllr Liam Brennan also offered his support for the motion stressing the importance of their survival for rural areas through the employment they created and the contribution they made to local economies.

“A lot of these beauticians are located in small villages and towns. It is important we support them.”

Article Funded by the Local Democracy Reporting Scheme.