City Pantry’s Managing Director Ben Carter tells us how the government’s recent decision to temporarily reduce VAT for the hospitality sector is a positive step for the industry.
Today marks the first day in which hospitality businesses can enjoy a reduced rate of VAT, falling from 20% to just 5% following Chancellor Rishi Sunak’s announcement last week to provide some much-needed assistance to the beleaguered restaurant sector.
The reduction applies to the following goods until 12th January 2021:
- Food and non-alcoholic beverages sold for on-premises consumption, for example, in restaurants, cafes and pubs
- Hot takeaway food and hot takeaway non-alcoholic beverages
- Sleeping accommodation in hotels or similar establishments, holiday accommodation, pitch fees for caravans and tents, and associated facilities
- Admissions to certain attractions that are not already eligible for the cultural VAT exemption
In light of the change, our Managing Director Ben Carter speaks about how it will positively affect the industry.