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VAT Change from 12.5% to 20% for UK Users
VAT Change from 12.5% to 20% for UK Users

VAT Increase from 1st April 2022 for UK Catering Hospitality Clients and Customers

Heather Ross avatar
Written by Heather Ross
Updated over a week ago

Read Time: 2 minutes

On 01/04/2022, the UK VAT what updated from 12.5% to 20% on certain services.

The UK Government announced a VAT increase from 12.5% to 20% for certain hospitality catering. Find out exactly to what hospitality services this applies to and if you're affected by going to the GOV.UK website.

The VAT rate change came into effect on April 1st, 2022. You will need to update your VAT rate for Standard Rated Food Items on Spoonfed.

Change VAT Rate

Change the VAT rate in Setup > Organization > Tax Rates.

Add a New VAT Rate

You may need to add a new 20% VAT rate by clicking 'Add Tax'. Then set up a 20% VAT rate.

If you change or edit a Tax Rate, new Orders will have this applied as needed, but old Orders need to be updated. For any Orders that need this updated VAT, manually change the Tax Rate in each Order.

You may also need to change this in each Menu.

Edit an existing VAT Rate

  1. To increase the 12.5% VAT rate to 20% click on 'Edit' next to the 12.5% VAT rate.

  2. Change the Rate to 20%.

  3. Click 'Save'.

This will update all Items and Menus that currently have a 12.5% VAT rate, to the new 20% VAT rate. Please make sure this complies with the Government guidance. Orders placed after you make the change, will be charged with 20% VAT instead of 12.5% VAT.

Orders that have been created for a future date before you made the change, still need to be manually edited to not be charged with the old 12.5% VAT.

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