Temporary VAT change announcement – How does it affect you?

From 25 June 2026 to 1 September 2026, a temporary reduced VAT rate of 5% will apply to certain children’s meals, children’s admission tickets, and qualifying family attractions. This represents a reduction from the standard VAT rate of 20%.

What is changing?
The temporary 5% VAT rate will apply to:
• Children’s meals supplied by restaurants, cafés and similar establishments for consumption on the premises.
• Children’s admission tickets to cinemas, theatres, concerts, exhibitions and shows.
• Admission tickets to certain family-focused attractions, including theme parks, zoos, soft play centres, amusement parks and similar venues.

Children’s Meals – Key conditions
To qualify, the meal must:
• Be marketed, priced and presented specifically as a children’s meal; and
• Be supplied as part of catering services for consumption on the premises.

The reduced rate does not apply to:
• Smaller portions of adult meals;
• Lower-calorie options;
• Discounted adult meals; or
• Takeaway meals.

Actions businesses should consider
Given the short lead-in period, businesses should review:
• VAT coding within EPOS and accounting systems.
• Ticketing and booking platforms.
• Menu and pricing structures.
• Marketing materials and product descriptions.
• Staff training and operational procedures.
• Treatment of family packages and bundled offers.

How We Can Help
The rules are highly dependent on how products and admissions are marketed, priced and presented. Businesses should not assume that all children’s offerings or family admissions automatically qualify.
We recommend reviewing your supplies before 25 June to ensure the correct VAT treatment is applied and that systems are updated in time for implementation.

If you would like us to review your specific circumstances, assess qualifying supplies, or assist with system and process changes, please contact our team on 028 8772 4697.