A temporary reduced VAT rate of 5% applies to children's meals served at qualifying catering establishments between 25 June 2026 and 1 September 2026 inclusive. You can use this guide to configure your systems correctly before the change takes effect on 25 June 2026, and to reverse those changes when the standard 20% rate resumes from 2 September 2026.
For full details on the UK Government policy, we recommend you read the Gov UK Policy Paper to ensure this policy is applied correctly for your specific property and offerings.
⚠️ Important: Document every change you make — all updates will need to be reversed when the VAT rate returns to 20% for children's meals from 2 September 2026.
Apply the 5% VAT rate - from 25 June 2026
If you offer children's meals within your restaurant, complete the steps below to apply and reverse the temporary VAT change.
Here is a quick overview of the actions to be completed:
When: | Steps to complete: |
In advance / Immediately before trading on 25.06.2026 | Step 1: Create a tax rule (if required) |
Immediately before trading begins on 25.06.2026 | Step 2: Assign the Tax rule to the PLU items affected |
Immediately before trading begins on 25.06.2026 | Step 3: Assign the Tax rule to the Charge codes |
Immediately before trading begins on 25.06.2026 | Step 4: Check mapping to PMS Analysis codes (if applicable) |
Step 1: Create a 5% Tax rule (if required)
Before creating a new tax rule, check whether a 5% tax rule already exists in your system. You can check this by navigating to: System, Configuration, then select Tax Rules. Reusing an existing rule helps maintain consistency and prevents duplication.
If you do not have a 5% tax rate, use our support guide to create a Tax Rule.
Step 2: Assign the Tax rule to the PLU items affected
Each PLU item has a tax rule assigned to it. To update PLU items with the 5% VAT rate, use our support article on Bulk PLU Updating.
Step 3: Assign the Tax rule to the Charge codes
The tax rule on a charge code applies when that charge code is used for a miscellaneous item in EPoS.
Follow the steps below to update the relevant charge codes:
Log in to Guestline EPoS Back Office.
Click Setup, enter the daily password, and press Enter.
Click Charge Code Setup.
In the Tax Rule column, update the relevant charge codes to the 5% tax rule using the drop-down box on the grid.
Click Save, then click Close.
⚠️ Important:
If your EPoS system is linked to a Guestline PMS for Room Transfer or Batch Post (Z-Read), do not mix PLU item tax rules under a single charge code. For example, if you have a charge code called KIDS MENU, this must not include both drink and food items, as this will adversely affect VAT reporting in Guestline PMS.
Changing settings in the mapping area of Guestline EPoS can adversely affect PMS shift allowances. If you are unsure, consult the system administrators for your Guestline PMS before making changes.
Reverse the VAT rate - from 2 September 2026
From 2 September 2026, revert your Guestline EPoS configuration to the standard 20% VAT rate.
Complete these steps immediately before trading begins on 2 September 2026:
Log in to Guestline EPoS Back Office. Click PLU Setup, then click PLU Items. For each PLU item you updated, select the standard 20% tax rule from the drop-down box. Click Save, then click Close.
Within Guestline EPoS Back Office, click Setup. Enter the daily password, and press Enter. Click Charge Code Setup. Revert the tax rule on each updated charge code back to the 20% rule using the drop-down box. Click Save, then click Close.
Review your PMS mappings to confirm charge codes and analysis codes are correctly aligned following the revert.
Guestline PMS
If you also have Guestline PMS, visit our support articles for changes to apply a temporary 5% VAT rate for children's meals within the PMS.
Inform your team
Keep your team informed throughout the VAT change period to reduce errors at the point of sale.
Inform your finance and sales teams about the rule changes made within each system.
Provide quick reference guides for VAT changes to your staff for this limited period.
Remind staff of the reversal date — all changes must be reverted from 2 September 2026.