- VAT will be temporarily cut from 20% to 5% from 25 June to 1 September 2026 on certain family-focused hospitality and leisure supplies.
- Qualifying items include children’s restaurant meals, family/children’s cinema, theatre and exhibition tickets, and admission to attractions like museums, zoos, soft play centres and wildlife parks.
- Businesses must update software, price lists, and possibly marketing materials, and clearly define “child” and “children.”
- They need to decide whether to pass on, retain, or partially share the VAT saving, and may need to correct pre-paid bookings or issue refunds.
- There are significant compliance risks: applying the wrong VAT rate could lead to extra tax, penalties, interest, and reputational damage.
Source: swgroup.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
