Salon bookkeeping: two VAT rates under one roof
Written by Ilias Aarrass7 min read · Published on · Last reviewed on 
In short
Hairdressing services such as cutting, washing, colouring and shaving fall under 9% VAT; beauty treatments, nail care, make-up and product sales under 21%.
- For a bridal booking covering hair and make-up at one price, split by the actual ratio; putting it all at 9 per cent invites a correction in an audit.
- If you accept cash, your till must balance daily and the closing balance must match what is actually in the drawer.
- In an audit the tax authorities often work back from purchases to turnover, so record your own use and your wastage.
- Dye and shampoo still in stock on 31 December are not yet a cost and raise your profit for that year.
A salon is fiscally more complex than it looks. Your haircut carries 9 per cent VAT, the nail treatment beside it 21, and the shampoo you sell 21 as well. Add frequent cash payments and chair rental, and it adds up. This article covers what makes salon records different.
Nine or twenty-one: it depends on the treatment
Hairdressing services fall under the reduced 9 per cent rate, a deliberate choice to encourage labour-intensive services. Nothing changed in 2026: hairdressing stays at 9 per cent. The VAT increase that did take effect on 1 January 2026 applied only to accommodation.
But not everything done in a salon is a hairdressing service. Beauty treatments, nail care and applying make-up fall under the standard rate. Selling products also carries 21 per cent.
| Treatment or product | VAT |
|---|---|
| Cutting, washing, blow-drying, colouring, perming | 9% |
| Shaving and beard trimming | 9% |
| Beauty treatment and facials | 21% |
| Nail care and manicure | 21% |
| Make-up, including bridal | 21% |
| Sales of shampoo and styling products | 21% |
Your till system does the work, if set up right
With two rates under one roof, splitting manually invites errors. Set each treatment and product in your till once with the right rate, and the split comes out automatically.
Check those settings after every price list change. A new treatment on the wrong rate runs for months before anyone notices, and correcting it via a VAT adjustment then costs interest.
Cash and cash records
Salons still see a lot of cash, which makes you an attractive target for a tax audit. If you accept cash, your till must balance daily: opening balance, receipts, payments, closing balance, matching what is actually in the drawer.
A negative cash balance is the clearest alarm bell there is, because you cannot spend money that is not there. More in cash records.
- Count the till daily and record the count, even on quiet days
- Keep all Z-readings from your till; that is your turnover evidence
- Book private drawings from the till separately, not as costs
- Record products you use yourself or give away separately as own use
- Record tips according to the arrangement with your staff
Stock: your purchases are not yet a cost
You buy dye, shampoo and styling products in bulk. At year-end you count what is left. That stock is not yet a cost, so it raises your profit for the year. See valuing stock at year-end.
In an audit the tax authorities often work backwards from purchases: how many litres of colour did you buy, how many treatments is that, and what turnover should follow. So record your own use and wastage, or a gap appears that reads as unrecorded turnover.
Chair rental, your own salon or mobile
Renting a chair from a colleague is a business expense usually carrying 21 per cent VAT you can reclaim. Do watch your independence: working to the salon owner's rota and price list raises the risk of false self-employment.
Working from home means strict rules for deducting your workspace, covered in home office deduction. The trade-off between chair rental and working at clients' homes is covered in mobile hairdresser or chair rental.
Frequently asked questions
Which VAT rate applies to a hairdresser in 2026?
Nine per cent for hairdressing services such as cutting, washing, blow-drying, colouring, perming and shaving. That rate did not change in 2026; the VAT increase of 1 January 2026 applied only to accommodation.
Does 9 per cent also cover nails and make-up?
No. Beauty treatments, nail care and applying make-up fall under the standard 21 per cent rate, even when offered in the same salon.
How do I book a bridal booking with hair and make-up?
Split the amount by the actual ratio: the hair portion at 9 per cent, the make-up at 21. Putting it all at the low rate almost certainly leads to a correction in an audit.
Which rate applies to products I sell?
Twenty-one per cent. Selling shampoo, styling products and other items is a supply of goods under the standard rate, not the hairdressing rate.
Must a hairdresser keep cash records?
Yes, as soon as you accept cash. Those records must balance daily and the closing balance must match the till. Also keep all Z-readings as turnover evidence.
Sources
- VAT rate for hairdressing services: 9% or 21%Belastingdienst · belastingdienst.nl
- How long to keep your records: 7 or 10 yearsBelastingdienst · belastingdienst.nl
Sources checked on
This article provides general information based on the rules known for 2026 and does not replace personal tax advice. For your specific situation, we're happy to take a look with you.
