What are the new VAT rules?
From 1 January 2021, the supply is zero rated and there is no requirement to obtain the customers VAT number or complete an EC sales list, like you would currently.
You must however, retain evidence of the export.
There are also time limits on when the export should take place..
Which companies are passing on the VAT cut?
Honest Burger has said it is aiming to pass on a third of the relief to customers by dropping prices across its 38 UK outlets. Accor Hotels – which runs Ibis, Mercure, Novotel, and Sofitel hotels – will be passing on VAT cuts to consumers, as will Bourne Leisure – which runs Butlin’s, Haven and Warner holiday parks.
Will VAT cut be passed on?
Closure recognition. Chancellor of the Exchequer Rishi Sunak announced earlier this month that the rate of VAT on food and non-alcoholic beverages will be cut from 20% to 5% until January 2021.
What does VAT cut mean?
The Government is set to slash VAT on food, drink and even staycations this week to help kickstart the economy and give struggling businesses a boost. … The cut applies to food and non-alcoholic drinks as well as accommodation and admission to attractions across the UK, such as zoos and cinemas.
What has vat been cut on?
On 8 July 2020, the government announced that it would introduce a temporary 5% reduced rate of VAT for certain supplies of hospitality, hotel and holiday accommodation, and admissions to certain attractions. … This cut in the VAT rate from the standard rate of 20% will have effect from 15 July 2020 to 31 March 2021.
Do restaurants pay VAT?
Most food is VAT-free but you do pay VAT on some food. … This will apply to all food and non-alcoholic drinks from restaurants, pubs, bars, cafés and other similar businesses across the UK. Alcohol will still be taxed at its current rate of 20 percent.