Temporary VAT cut on eat-in and takeaway food come into effect

The temporary VAT cut was announced as part of the Summer Statement in response to the coronavirus pandemic, as part of the effort to support businesses impacted by forced closures and social distancing measures.

ACS last week received clarification that any vendor providing food and drink for consumption on the premises or hot takeaway food or drinks are eligible for the reduced rate, including local shops.

Cold takeaway food and drinks are not included in the reduced rate.

ACS chief executive, James Lowman, said: “Local shops have done a fantastic job ensuring that they have been able to continue feeding their communities safely and effectively.

“We welcome clarification from the Treasury that convenience stores and other small shops will be able to benefit from the reduced rate of VAT on specific food and drink sales.”