All the things that should be cheaper from July 15 when VAT is reduced


Many items are expected to become cheaper today as further VAT reductions take effect.Chancellor Rishi Sunak announced the cuts in his “mini-budget” in order to “move the sectors and protect jobs”.

Speaking in the House of Commons, Sunak said the plan would help protect livelihoods after the economy shrank by 25% in just two months due to Covid-19.

Value added tax will be reduced from 20% to 5% for six months from Wednesday July 15, including food and non-alcoholic drinks.

The reduction will continue until January 12, 2021 and will include take-out meals and meals out as well as hotel, B&B and camping stays.

“These changes are being made as an urgent response to the coronavirus pandemic to support businesses severely affected by forced closings and social distancing,” said a government spokesperson.

This will affect the following purchases:

  • Food and non-alcoholic beverages sold for consumption on the premises, for example in restaurants, cafes and pubs
  • Hot dishes to take away
  • Take-out non-alcoholic drinks
  • Accommodation in hotels or similar establishments
  • Holiday accommodation
  • Pitches for caravans and tents.

Entrances to the following attractions will also be included in the VAT reduction:

  • Theaters
  • Cirques
  • Salons
  • Theme parks
  • Concerts
  • Museums
  • Zoos
  • Cinemas
  • Exhibitions
  • Similar cultural events and installations


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