From the 1st of October the temporary VAT rate of 5% which replaced the Standard VAT rate of 20% for certain products in the hospitality sector such as 'Hot Drinks' and confectionery will be at another temporary reduced rate of 12.5% until 31 March 2022.
The following products and services attracted the reduced rate of 5%:
- Hospitality: supplies in the course of catering including supplies of hot and cold food and drink to be consumed on the premises and supplies of hot takeaway food and drink to be consumed off the premises
- Accommodation: the provision of hotel and holiday accommodation, pitch fees for caravan parks and tents and related facilities
- Attractions: admission to attractions not covered by the cultural exemption.
If you setup a temporary tax rate of 5% for those products to which it applied then the quickest and simplest way to move all of the products to the 12.5% rate is to modify the Tax Rate.
To do this go to your account backoffice and select 'POS' from the menu on the left. Select 'Tax'. All of your tax rates will be displayed. Click or tap on the 'Modify Tax Rate' link to the right of the temporary tax rate.
Rename the tax rate and change the rate as shown below.
Press the green 'Update Tax rate' button and all the products at the temporary rate of 5% will now be on the new temporary rate of 12.5%.