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The new 5% VAT rate has led to much discussion about how it actually works in practice for cafes, restaurants, pubs, hotels etc providing food and drinks. This note gives some pointers in the areas that are unclear. It was written by Steve Chamberlain, Senior VAT Manager MHA Monahans.
Hopefully the changes in the VAT rate designed to help hospitality businesses should prove an incentive for customers to spend, whilst helping businesses through a very difficult time. However, as with all Government incentive schemes, the devil is in the detail. Here are our top tips for getting it right: