UK VAT rate changes (effective from July 15 2020)

What is happening?

The UK government is cutting the rate of Value Added Tax (VAT) on hospitality and tourism from 20% to 5%.

The cut applies to food and non-alcoholic drinks as well as accommodation and admission to attractions across the UK. A detailed list of supplies that will benefit from the cut can be found here.

When?

This VAT rate reduction will have effect from 15 July 2020 to 12 January 2021.

How does this affect me?

You may need to make some changes to your Vend sales taxes as a result of this new rule. Please see the guidelines below for more details.

Creating a new tax rate

  1. Click Setup
  2. Click Sales Taxes
  3. Click the Add Sales Tax button.
  4. In the pop-up window, name your tax and type in the tax percentage.
  5. Tick the small box to change the tax used by products to this new sales tax instead of an existing sales tax 
  6. Save your tax

Changing your default sales tax

  1. Click Setup
  2. On the General Setup page, click on the drop-down under Default Sales Tax and choose the new sales tax from the list.
  3. Click Save

Changing individual product sales tax

  1. Click Products
  2. Find the product that you want to edit in the product list
  3. Click on the pencil to the right of the product
  4. Click the drop-down under Tax in the Tax field on the page
  5. Choose the new tax to the one that is assigned. 
  6. Click Save

Note: This can also be done for multiple products at once via CSV/Spreadsheets.

Additional Information

  • Changing the default/individual product sales tax will not change the final retail price, instead it will change how much of that final retail price is made up of the retail price + tax percentage.
  • You may need to reset your data to reflect the changes. Click here for Mac/PC and here for iPad
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