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What was the announcement about VAT and children’s meals?
The Government announced there will be a temporary VAT cut on children’s meals this summer (from 25 June to 1 September)
Trade bodies the British Beer & Pub Association (BBPA) and UKHospitality (UKH) welcomed the move as a positive step for consumers and businesses while also calling for it to be a starting point for a broader, more permanent VAT reduction across the sector, to drive demand and align the UK with lower European rates.
We’ve broken down what constitutes a children’s meal, according to the Government guidance that has been released:
What are the conditions that have to be met?
While there is no legal definition of what a children’s mean is, according to the Government guidance, the meal has to be held out for sale only as a meal for children.
It also has to be supplied as part of catering services by a restaurant, café or similar establishment for consumption on the premises (as confirmed to The Morning Advertiser, this includes pubs).
For example, a meal is likely to qualify if it appears on a distinct children’s menu, is clearly branded as a children’s option and is priced or packaged with children in mind.
It is worth noting portion size and/or price alone is not enough to make something a children’s meal.
What about meals packages and add-ons?
In this instance, the entire package can qualify for the reduced rate however, optional items, add-ons or upgrades that are priced separately and do not form part of the meal remain subject to the standard VAT rate.
Are drinks included?
Means including a non-alcoholic drink supplied as part of a children’s meal are eligible but those that include an alcoholic drink will not normally be regarded as a children’s meal, the guidance states.
What does not qualify?
This does not include meals marketed as smaller portions, lower calorie options, discounted versions of adult meals or shared meals intended for adult and children.
Takeaway meals also do not qualify for the reduced rate.
