Reduced Rate VAT Changes for Children's Meals - Summer 2026

In a Ministerial Statement made by the Chancellor on 21 May 2026, the government announced the introduction of a temporary reduced rate of VAT (5%) for supplies of children’s meals and tickets to certain attractions, intended to reduce the cost of selected activities and services for families with children during the summer holiday period. The reduced rate will apply from 25 June 2026 to 1 September 2026 (inclusive).

The reduced rate for children’s meals and children’s tickets for cinemas, theatres, exhibitions and shows covers those supplies that are marketed, priced and presented as intended for children. These do not generally apply to supplies aimed at adult customers, except where those supplies form part of a qualifying family package as described in this brief. The reduced rate will apply to tickets for all customers for attractions set out within this brief.

This cut in VAT rate from the standard rate of 20% will be introduced by statutory instrument and have effect on admissions from 25 June 2026 to 1 September 2026.

What changes are needed to support this government change?

• Updated Tax Rates for products relating to Children's Meals and Drinks

• Create new soft drink products (where they can be sold to both adults and children)

• Update any promotions related to children's meals and swap any drink related products

Creating New Tax Rules & Apply to Products

Follow these steps to add an inclusive tax rule:

1. Click Add

2. Enter the Inclusive Tax Rule Name and Description (optional)

3. Select Applies To

   • Sold Goods Only

   • Purchased & Sold Goods

4. Click Next

5. Enter the 5% Rate percentage and set if the rate should Apply by Default

6. Click Finish

• Apply the required filters to located children's products

• Change the current 20% tax rate to be the new 5% rate

  Remember to complete this change before any sales of products on the 25 June 2026

• Perform a Send Communications & Send to POS

• Perform a Send to POS

Soft Drinks

Where soft drinks that are displayed on children's menus and are setup as one product which could be consumed by an adult or child our recommendation is for those products to be created as a separated dedicated product, set with the lower 5% rate for the duration of this change.

Changes for within iOrder Platform

For customers using iOrder Platform to manage guest facing menus the following changes should be completed after a successful product sync from Aztec:

• Update the Tax Rule friendly name

• Make any menu changes for new soft drinks

Bookings Invoices

If you are creating invoices for bookings within the period of this initiative ensure the correct VAT rates are being entered when creating the invoice.

For more information visit the Bookings Knowledge Base here.