Contact Us: 0800 121 6376

From 15th July 2020 until 12th January 2021 a temporary reduced rate of VAT of 5% is being applied to certain categories of food and drink.

These are:

    • hot and cold food for consumption on the premises on which they are supplied
    • hot and cold non-alcoholic beverages for consumption on the premises on which they are supplied
    • hot takeaway food for consumption off the premises on which they are supplied
    • hot takeaway non-alcoholic beverages for consumption off the premises on which they are supplied

Most food and drink will remain zero rated. There is no change to the VAT rate for alcoholic beverages.

This does not apply to food and non alcoholic drinks supplies as part of catering contracts, except in restaurants.

The temporary reduction of VAT to 5% is aimed at assisting the hospitality sector, including those selling hot and cold food to go.

VAT will automatically return to the standard rate 20% at the end of the reduction period.

Member Action

  • Update prices

More information

https://www.gov.uk/guidance/vat-reduced-rate-for-hospitality-holiday-accommodation-and-attractions#:~:text=If%20you%20supply%20food%20and,only%20need%20to%20charge%205%25.

Related Articles

Related Articles

More Help For Self Assessment Taxpayers

HM Revenue and Customs (HMRC) has announced that self assessment taxpayers will not be charged a 5% late payment penalty if they pay their tax or set up a payment plan by April 1.
Read More

HMRC warns of tax credit scam

HMRC warns of tax credit scam
Read More

Less Than One Month To Complete Your Self Assessment!

HM Revenue and Customs (HMRC) has today announced that around 5.4 million Self Assessment customers have less than a month left to complete their tax return.
Read More