Hospitality Sector
VAT Calculator for Hospitality
The hospitality sector has some of the most complex VAT rules in UK tax law. Whether you run a restaurant, hotel, or catering business, the rate applied depends heavily on what is sold and how it is consumed. This guide breaks it all down for 2026/27.
Hospitality VAT Rate Reference Table
| Supply Type | VAT Rate |
|---|---|
| Restaurant meals (dine-in) | 20% |
| Hot takeaway food | 20% |
| Cold takeaway food | 0% |
| Hotel accommodation | 20% |
| Alcoholic drinks | 20% |
| Non-alcoholic drinks (on premises) | 20% |
| Bottled water (cold, to go) | 0% |
| Wedding venue hire | 20% |
The "Premises Test" for Food VAT
HMRC applies the "eat-in vs takeaway" test based on whether facilities are provided for eating on the premises. If you supply a cold sandwich with a table and chairs available, it may still be considered standard-rated. This is a common audit trigger for cafes and fast-food operators.
For exact calculations of your food and beverage invoices, use our UK VAT calculator. For larger catering contracts, see the VAT breakdown on £5,000 as a reference.