1. OVERVIEW
Purpose of This Analysis
This page provides a comparative overview of VAT rates applied to hairdressing and beauty services across European countries. The data demonstrates the wide variation in VAT treatment across Europe and provides context for understanding how different tax policies affect the sector.
Note: For detailed analysis of employment trends and VAT impact, see the dedicated Ireland Analysis page, which examines Ireland's experience with varying hairdressing VAT rates using CSO data for 2007–2026.
Revised 4 October 2026: The hairdressing rates for the reduced-rate countries were re-checked. Belgium has been removed from the reduced-rate list (hairdressing is standard-rated at 21%). The France note has been rewritten (France did not apply a reduced rate to hairdressing). Luxembourg is now 8% on a 17% standard rate throughout, Ireland reflects the cut to 9% from 1 July 2026, and Portugal and Romania are shown consistently in every table. Several unsupported statements about thresholds and informal trading have been removed or reworded as untested. Thresholds and the self-employment figures were not re-verified in this revision, with the exception of Portugal's threshold. See “Verification notes” in section 4.
Hairdressing VAT Rate Range
Across EU states (Luxembourg and Poland lowest at 8%; Hungary highest at 27%)
Threshold Range
Spain requires immediate registration; UK has the highest at ~€108k (thresholds not re-verified in this revision)
Reduced-Rate EU States
Ireland, Luxembourg, Netherlands, Poland, Slovenia apply a reduced rate to hairdressing; the other 22 EU states are standard-rated (Portugal provisional)
2025 EU SME Scheme
New cross-border threshold for EU businesses
2. VAT RATES BY COUNTRY
Current VAT Rates for Hairdressing Services
Rows for the five reduced-rate countries, Belgium, France and Portugal were checked in October 2026 (see section 4). Other rows are carried over from the original compilation and were not re-checked in this revision.
| Country | Standard VAT | Hairdressing Rate | Notes |
|---|---|---|---|
| Austria | 20% | 20% | Standard rate applies |
| Belgium | 21% | 21% | Standard rate applies. Belgium was authorised to apply a reduced rate to hairdressing under EU labour-intensive-services derogations, the last running to 31 December 2010; Belgian guidance now lists salon and hairdressing services at 21%. |
| Bulgaria | 20% | 20% | Standard rate applies |
| Croatia | 25% | 25% | Standard rate applies |
| Cyprus | 19% | 19% | Standard rate applies |
| Czech Republic | 21% | 21% | Standard rate applies |
| Denmark | 25% | 25% | No reduced rates in Denmark |
| Estonia | 24%* | 24%* | *Increased from 22% in July 2025 |
| Finland | 25.5% | 25.5% | Increased from 24% Sept 2024 |
| France | 20% | 20% | Standard rate applies. Hairdressing was among the services the EU's 2000–2002 labour-intensive-services experiment allowed member states to choose, but each state could pick only three categories and France used its allowance on other services (home renovation and personal services); hairdressing stayed at the standard rate. |
| Germany | 19% | 19% | Standard rate applies |
| Greece | 24% | 24% | Standard rate applies |
| Hungary | 27% | 27% | Highest standard rate in EU |
| Ireland | 23% | 9% | Cut from 13.5% to 9% with effect from 1 July 2026 (Budget 2026). Earlier periods at 9%: July 2011–Jan 2019 and Nov 2020–Sept 2023. See the Ireland Analysis page. |
| Italy | 22% | 22% | Standard rate applies |
| Latvia | 21% | 21% | Standard rate applies |
| Lithuania | 21% | 21% | Standard rate applies |
| Luxembourg | 17% | 8% | Reduced rate for hairdressing (standard rate 17% from Jan 2024; a temporary 1-point cut to 16%/7% applied during 2023) |
| Malta | 18% | 18% | Standard rate applies |
| Netherlands | 21% | 9% | Reduced rate for hairdressing |
| Poland | 23% | 8% | Reduced rate for hairdressing (Ministry of Finance, March 2024) |
| Portugal | 23% | 23%* | *Unable to confirm hairdressing on Portugal's reduced-rate lists (Lista I: 6%, Lista II: 13%). Portugal's default rule is that anything not on those lists takes the standard rate — shown here provisionally as standard pending direct confirmation from a Portuguese tax authority source. |
| Romania | 21%* | 21%* | *Standard rate rose from 19% to 21% Aug 2025. Hairdressing is standard-rated — the new 11% reduced band (which replaced the old 5%/9% bands) applies to other categories, not hairdressing. |
| Slovakia | 23% | 23% | Increased from 20% Jan 2025 |
| Slovenia | 22% | 9.5% | Reduced rate for hairdressing |
| Spain | 21% | 21% | Standard rate applies |
| Sweden | 25% | 25% | Standard rate applies |
| United Kingdom | 20% | 20% | Standard rate applies |
Non-EU European Countries
| Country | Standard VAT | Hairdressing Rate | Notes |
|---|---|---|---|
| Norway | 25% | 25% | Standard rate applies |
| Switzerland | 8.1% | 8.1% | Lowest standard rate in Europe |
3. KEY OBSERVATIONS
VAT Rate Distribution
| VAT Rate Category | EU States | Countries |
|---|---|---|
| Reduced rate (8–9.5%) | 5 | Luxembourg (8%), Poland (8%), Ireland (9% from July 2026), Netherlands (9%), Slovenia (9.5%) |
| Standard rate (17–27%) | 22 (Portugal provisional) | Germany (19%), Spain (21%), Belgium (21%), France (20%), Denmark (25%), Hungary (27%) and others. The UK (20%) is also standard-rated. |
Countries with Reduced Rates for Hairdressing
Five EU member states apply a reduced VAT rate to hairdressing services:
- Luxembourg: 8% (vs 17% standard)
- Poland: 8% (vs 23% standard)
- Netherlands: 9% (vs 21% standard)
- Ireland: 9% from 1 July 2026 (previously 13.5%; vs 23% standard)
- Slovenia: 9.5% (vs 22% standard)
Corrected 24 August 2026: France, Romania, and Portugal were previously listed here as reduced-rate countries for hairdressing. Direct verification found France and Romania apply the standard rate (France did not apply a reduced rate to hairdressing); Portugal could not be confirmed as reduced-rate and is shown as standard pending further checking. All three have been removed from this list.
Corrected 4 October 2026: Belgium was also listed here at 6%. Belgian guidance lists salon and hairdressing services at the 21% standard rate, so Belgium has been removed from the reduced-rate list and the count reduced from “~10” to 5. Please confirm against the Belgian FPS Finance (SPF Finances) guidance before relying on this.
Recent VAT Rate Changes (2020-2026)
COVID-19 Temporary Measures:
- Germany: Temporarily reduced standard rate from 19% to 16% (July-Dec 2020)
- Ireland: Cut hairdressing rate from 13.5% to 9% (Nov 2020 - Sept 2023)
- Various countries: Temporary reductions for hospitality sectors
2024-2026 Changes:
- Luxembourg: Standard rate back to 17% and reduced rate back to 8% in January 2024, ending the temporary 2023 one-point cut
- Finland: Increased standard rate from 24% to 25.5% (Sept 2024)
- Estonia: Increased from 22% to 24% (July 2025)
- Slovakia: Increased from 20% to 23% (Jan 2025)
- Romania: Increasing rates across categories (Aug 2025)
- Ireland: Hairdressing rate cut to 9% effective 1 July 2026
Comparative Context
What This Data Shows:
- Wide variation: Hairdressing VAT rates in the EU range from 8% (Luxembourg, Poland) to 27% (Hungary)
- Mostly standard-rated: Only five of 27 EU member states apply a reduced rate to hairdressing
- EU flexibility: The EU VAT Directive allows member states to apply reduced rates to certain services, including hairdressing
- Recent trend: Mix of increases and decreases, with some countries raising overall VAT rates while others maintain or reduce hairdressing-specific rates
- UK position: At 20%, the UK is in the middle of the range of standard rates
Self-Employment Rates (Indicative Only)
Where available, hairdressing sector self-employment data shows the following. These figures were compiled earlier and have not been re-verified against Eurostat for this revision. The UK figure is HMRC administrative data (PAYE employees and Survey of Personal Incomes self-employed), whereas the other countries are labour-force-survey estimates, so the rows are not like-for-like. For comparison, ONS Annual Population Survey data for UK hairdressing and beauty occupations implies a higher non-employee share (about 61% in 2024 and 70% in 2025).
| Country | Self-Employment Rate | Hairdressing VAT Rate | VAT Threshold | Source/Notes |
|---|---|---|---|---|
| UK | 53% (2022-23) | 20% | £90,000 (~€108,000) | HMRC FOI data (administrative; different measure) |
| Italy | 55% | 22% | €85,000 | Eurostat Labour Force Survey (not re-verified) |
| Netherlands | 55% | 9% | €20,000 | Eurostat Labour Force Survey (not re-verified) |
| Spain | 52% | 21% | None (immediate registration) | Eurostat Labour Force Survey (not re-verified) |
| Germany | 59% | 19% | €22,000 | Eurostat Labour Force Survey (not re-verified) |
| Poland | 66% | 8% | 200,000 PLN (~€43,000) | Eurostat Labour Force Survey (not re-verified) |
France was removed from this table in the October 2026 revision: it is standard-rated (20%), so it was not a valid “low VAT, high self-employment” example.
Key Observations:
Self-employment vs VAT rates: In this small sample, self-employment rates run from 52% to 66% across hairdressing rates of 8% to 22%. Reduced-rate countries sit at both ends of the range (Poland 8%: 66%; Netherlands 9%: 55%). With so few countries and non-comparable measures, this table cannot show a relationship between hairdressing VAT rate and self-employment in either direction. The Ireland Analysis page, which has a consistent time series, finds the self-employed share rose under both the 9% and 13.5% rates.
Reduced rates and thresholds: Among the five EU states with a reduced hairdressing rate, the registration thresholds in the table below are €20,000 (Netherlands), about €43,000 (Poland), €42,500 for services (Ireland), €50,000 (Luxembourg) and €60,000 (Slovenia), all at or below about 55% of the UK's ~€108,000. No reduced-rate country in this table combines its rate with a threshold as high as the UK's. Caution: thresholds differ in design (exemption schemes versus registration thresholds, goods versus services) and were not re-verified in this revision, so treat the comparison as indicative.
Untested hypothesis: It is sometimes argued that very low thresholds push micro-businesses towards cash trading, and that high thresholds keep them in the formal economy. Nothing on this page tests that claim.
VAT Registration Thresholds by Country
VAT registration thresholds determine when businesses must register and start charging VAT. They bear on:
- Compliance burdens on small businesses
- Incentives for staying below threshold (to avoid VAT admin)
- The number of VAT-registered businesses in the sector
Thresholds were not re-verified in this revision, except Portugal, which was corrected. Hairdressing is a service, so the services threshold is the relevant one where a country has separate figures for goods and services.
| Country | VAT Threshold (Domestic) | Hairdressing VAT Rate | Standard VAT Rate |
|---|---|---|---|
| UK | £90,000 (~€108,000) | 20% | 20% |
| Ireland | €85,000 (goods) / €42,500 (services) | 9% (from 1 July 2026; 13.5% before) | 23% |
| France | €85,000 (goods) / €37,500 (services) | 20% | 20% |
| Germany | €22,000 | 19% | 19% |
| Italy | €85,000 | 22% | 22% |
| Spain | None (immediate registration required) | 21% | 21% |
| Netherlands | €20,000 | 9% | 21% |
| Belgium | €25,000 | 21% | 21% |
| Poland | 200,000 PLN (~€43,000) | 8% | 23% |
| Portugal | €15,000 exemption (Art. 53 CIVA; based on prior-year turnover) | 23%* | 23% |
| Austria | €35,000 | 20% | 20% |
| Sweden | 120,000 SEK (~€10,500) | 25% | 25% |
| Denmark | 50,000 DKK (~€6,700) | 25% | 25% |
| Finland | €20,000 | 25.5% | 25.5% |
| Czech Republic | 2,536,500 CZK (~€100,000) | 21% | 21% |
| Romania | 300,000 RON (~€60,000) | 21% | 21% |
| Hungary | 12 million HUF (~€30,000) | 27% | 27% |
| Slovakia | €62,500 | 23% | 23% |
| Slovenia | €60,000 | 9.5% | 22% |
| Estonia | €40,000 | 24% | 24% |
| Latvia | €50,000 | 21% | 21% |
| Lithuania | €55,000 | 21% | 21% |
| Luxembourg | €50,000 | 8% | 17% |
| Malta | €35,000 (goods) / €30,000 (services) | 18% | 18% |
| Cyprus | €15,600 | 19% | 19% |
| Croatia | €50,000 | 25% | 25% |
| Bulgaria | 50,000 BGN (~€25,000) | 20% | 20% |
Understanding VAT Thresholds:
- Highest thresholds for services: UK (~€108,000), Czech Republic (~€100,000) and Italy (€85,000). France and Ireland's €85,000 applies to goods only; their services thresholds (€37,500 and €42,500) are the relevant ones for hairdressing.
- Lowest: Spain requires registration from the first euro. Portugal has a small exemption (€15,000, reported by a secondary source and not checked against the Portuguese tax authority). Denmark (~€6,700) and Sweden (~€10,500) have very low thresholds.
- New EU SME scheme (2025): Cross-border threshold of €100,000 allows EU businesses to sell across borders without immediate VAT registration in each country
Note: Currency conversions are approximate and based on October 2025 exchange rates. Some countries have different thresholds for goods vs services.
4. METHODOLOGY & DATA SOURCES
VAT Rate Sources
Primary Sources:
- European Commission - VAT rates overview: Official EU VAT rates page (the per-country rates are in the Commission's Taxes in Europe Database, which is supplied by the member states themselves)
- Individual country tax authority websites and publications
- OECD tax database
- EY, PWC, Deloitte international tax guides
Verification notes (October 2026):
- Belgium (21%): Belgian guidance from Wolters Kluwer Belgium and Accountable lists salon and hairdressing services at the standard rate. EU authority for a reduced rate on hairdressing ran to 31 December 2010 (Council Decision 2006/774/EC). Secondary sources — confirm with SPF Finances.
- France (20%): French Parliament written answers (Assemblée nationale questions 38265 and 75349; Sénat, 2003) record that hairdressing was on the EU list for the 2000–2002 experiment but that France limited itself to three other categories.
- Luxembourg (8%): Eurofiscalis and Luxembourg press reporting (2023) place hairdressing in the 8% reduced band; standard rate 17% from January 2024.
- Netherlands (9%): VATcalc lists hairdressing among the services in the 9% band.
- Poland (8%): Polish Ministry of Finance statement reported by Personal Care Insights, March 2024: hairdressing at 8%.
- Slovenia (9.5%): PwC Worldwide Tax Summaries lists hairdressing services in the 9.5% band.
- Ireland (9% from 1 July 2026): see the Ireland Analysis page for the Budget 2026 and RTÉ sources.
- Portugal: hairdressing could not be confirmed as reduced-rate; the €15,000 exemption threshold comes from a secondary source and should be confirmed with the Autoridade Tributária.
Recent Changes:
- Government budget announcements (2024-2026)
- Official tax authority press releases
- VAT specialist publications (VAT Solutions, EuroFiscalis)
VAT Threshold Sources
Primary Sources:
- Council Directive (EU) 2020/285 - EU VAT Directive on small enterprises
- European Commission VAT threshold data
- Individual member state tax authority publications
- VAT compliance platforms (Fonoa, VATcalc, Azola Legal)
2025 Changes:
- New EU SME Scheme: €85,000 domestic threshold maximum, €100,000 cross-border threshold
- Multiple countries increased thresholds due to inflation (2024-2025)
- Ireland: Updated thresholds €85,000 goods / €42,500 services (from €80,000/€40,000)
Self-Employment Data
Sources:
- Eurostat Labour Force Survey (compiled earlier; not re-verified in October 2026)
- OECD Statistics database
- National statistical agencies
- HMRC FOI data for the UK
Note on Data Availability:
Self-employment data by occupation is not uniformly available across all European countries. Where available, it typically comes from labour force surveys conducted by national statistical agencies and compiled by Eurostat/OECD. Administrative data (HMRC) and survey data are not directly comparable.
Data Quality Notes
Limitations:
- VAT rates can change during the year - the reduced-rate countries were checked in October 2026; other rows were not re-checked
- Some countries have regional variations (e.g., Canary Islands in Spain)
- Classification of "hairdressing services" may vary slightly between countries
- Self-employment data may use different occupational classifications and different measures (survey versus administrative)
- Some temporary measures may have expired or been extended since publication
Updates:
VAT rates are subject to change. Always consult official national tax authority sources for current rates when making business decisions.
Related Analysis
For detailed analysis of how VAT rate changes affect employment:
- Ireland Analysis: CSO employment and self-employment data for 2007–2026 across multiple VAT rate periods
- UK Employment & Workforce Data: PAYE and self-employment trends
Report Information
Compiled by: SalonLogic Pro / Andrew Clelland
Date: October 2025
Revised: 4 October 2026 (hairdressing rates re-checked; see notes above)
Contact: andrew@salonlogic.co.uk
Disclaimer
This information is provided for general reference only and does not constitute tax advice. VAT rates and classifications change frequently. Always consult official sources and seek professional advice for specific situations.
Correction notice — 15 October 2026
A dead link to a retired UK employment page now points to the Employment & Workforce Data page. The USA self-employment row was removed because no source had been recorded for it. The “from” level for Ireland’s January 2025 threshold change was corrected to €80,000 / €40,000, consistent with the Ireland Analysis page.