Vending

UK extends VAT rate reduction, includes vending

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March 4, 2021

Vended products are covered under the U.K. government's value added tax rate reduction, according to a notice from the Automatic Vending Association.

The temporary rate reduction announced in July of 2020, from 20% to 5%, has been extended to Sept. 30, 2021.

The rate will rise to 12.5% from Oct. 1, 2021 to March 31, 2022.

All refreshment vending product ranges are included in the reduction, such as both hot and cold beverages, confections, snacks and food, provided they are consumed within a "canteen area," according to the AVA.

On July 8, 2020, the government allowed VAT registered businesses to apply for the temporary 5% rate from July 15, 2020 to March 31, 2021 for supplies related to hospitality, hotel and holiday accommodation and admissions to certain attractions, according to a U.K. guidance website.

The reductions were introduced in response to the coronavirus pandemic for businesses affected by closures and social distancing.

For an update on how the coronavirus pandemic has affected convenience services, click here.